Support
Support for the act mostly came from banks, credit card companies, and other creditors.
| This section requires expansion. |
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:
“Those who, while they disapprove of the character and measures of a government, yield to it their allegiance and support are undoubtedly its most conscientious supporters, and so frequently the most serious obstacles to reform.”
—Henry David Thoreau (1817–1862)
“The sceptics assert, though absurdly, that the origin of all religious worship was derived from the utility of inanimate objects, as the sun and moon, to the support and well-being of mankind.”
—David Hume (1711–1776)
“A government which robs Peter to pay Paul can always depend on the support of Paul.”
—George Bernard Shaw (1856–1950)