CFPB changes credit card rule for stay-at-home parents
Consumer Financial Protection Bureau (CFPB) makes it easier to obtain credit cards for stay-at-home spouses.
The consumer bureau updated the existing rules to fix the law which kept some stay-at-home spouses or parents from getting credit cards. This change comes after public protest and applies to the Credit Card Accountability, Responsibility and Disclosure (CARD) Act.
The Act required the companies to verify applicants’ liability to pay before approving them for credit cards. That meant that spouses who rely on their partner’s income would have no way of obtaining a card on their own.
And that provision was interpreted as credit card companies could consider only personal, independent income, not total household income. That led to constant denials to some non-working people and stay-at-home parents who otherwise would have been approved.
But now consumer bureau is going to allow credit card companies to issue credit cards to stay-at-home parents or partners if they are at least 21 years old and have access to resources that allow them to make payments on a credit card.
The final regulation follows the CFPB proposed changes in October 2012. The changes will be finalized once they are published in the Federal Register, and credit card issuers will have six months to comply with the new rules.