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:
“The habit of arguing in support of atheism, whether it be done from conviction or in pretense, is a wicked and impious practice.”
—Marcus Tullius Cicero (10643 B.C.)
“If only I had a wife! I used to think, who could stay home and keep the children happy, why I could support six of them. A cinch.”
—Brenda Ueland (18911985)
“The partridge and the rabbit are still sure to thrive, like true natives of the soil, whatever revolutions occur. If the forest is cut off, the sprouts and bushes which spring up afford them concealment, and they become more numerous than ever. That must be a poor country indeed that does not support a hare. Our woods teem with them both.”
—Henry David Thoreau (18171862)