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:
“Children learn to care by experiencing good care. They come to know the blessings of gentleness, or sympathy, of patience and kindness, of support and backing first through the way in which they themselves are treated.”
—James L. Hymes, Jr. (20th century)
“A government which robs Peter to pay Paul can always depend on the support of Paul.”
—George Bernard Shaw (1856–1950)
“In erotic love, two people who were separate become one. In motherly love, two people who were one become separate. The mother must not only tolerate, she must wish and support the child’s separation.”
—Erich Fromm (20th century)