Support
Support for the act mostly came from banks, credit card companies, and other creditors.
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Since banks, credit companies and other creditors are the ones who must bear the losses for debts discharged through bankruptcy, their lobby power was a great supporting factor to eventually prevailing and forcing legislatures to pass the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.
It was widely claimed by advocates of BAPCPA that its passage would reduce losses to creditors such as credit card companies, and that those creditors would then pass on the savings to other borrowers in the form of lower interest rates. These claims turned out to be false. After BAPCPA passed, although credit card company losses decreased, prices charged to customers increased, and credit card company profits soared.
Read more about this topic: Bankruptcy Abuse Prevention And Consumer Protection Act
Famous quotes containing the word support:
“To suppose such a thing possible as a society, in which men, who are able and willing to work, cannot support their families, and ought, with a great part of the women, to be compelled to lead a life of celibacy, for fear of having children to be starved; to suppose such a thing possible is monstrous.”
—William Cobbett (1762–1835)
“What has been the effect of [religious] coercion? To make one half the world fools, and the other half hypocrites. To support roguery and error all over the earth.”
—Thomas Jefferson (1743–1826)
“Because the young child feels with such intensity, he experiences sorrows that seem inconsolable and losses that feel unbearable. A precious toy gets broken or a good-bye cannot be endured. When this happens, words like “sad” or “disappointed” seem a travesty because they cannot possibly capture the enormity of the child’s loss. He needs a loving adult presence to support him in his pain but he does not want to be talked out of it.”
—Alicia F. Lieberman (20th century)