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:
“‘Tis not enough to help the feeble up,
But to support him after.”
—William Shakespeare (1564–1616)
“... the outcome of the Clarence Thomas hearings and his subsequent appointment to the Supreme Court shows how misguided, narrow notions of racial solidarity that suppress dissent and critique can lead black folks to support individuals who will not protect their rights.”
—bell hooks (b. c. 1955)
“He uses statistics as a drunken man uses lamp-posts—for support rather than illumination.”
—Andrew Lang (1844–1912)