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.
Latest Credit Card Issuers News
An alliance between American Express and i2c is now focused on offering payment products in the American Express network through fintech companies. Amex announced its collaboration with payment and banking technology company i2c in April this year. The two partnered to create a platform that allows fintechs and financial institutions to launch cards more quickly […]
Continuing to live in the present reality and the ongoing COVID-19 pandemic, global giants of the financial and credit sector introduce new bonuses for the convenience of their customers. Mastercard, in turn, has announced new partnerships with DoorDash and HelloFresh offering new food and grocery delivery perks to Mastercard World and World Elite cardholders. According […]
Walgreens has recently announced its plans to enter the consumer financial services market. To be precise, the second-largest pharmacy store chain in the United States is going to start issuing credit cards and prepaid debit cards under its brand. The main reason for this expansion of the scope of activity is the losses incurred by […]
Very soon Apple fans will get an opportunity to purchase such devices as Mac, iPad, AirPods, the Apple Pencil, and more at a 0% interest payment plan. This weekend, Bloomberg shared the information that Apple Inc. was about to offer a 0% financial option on its Apple Card credit card by Goldman Sachs®. The new […]
In April, Mastercard conducted a global online survey aimed at studying changes in customer behavior during the COVID-19 outbreak. Now even going to the nearest supermarket for essentials may bode the risk of getting infected. Everyone seeks to be careful, observing hygiene measures to maintain health. Thus, it is natural that people’s buying habits have […]