CFPB Gives Stay-at-Home Parents Credit-Card Rule Fix
Help is on the way: a federal agency is going to propose a rule that will make it easier for many stay-at-home parents without their own incomes to qualify for a credit card.
That is good news for many stay-at-home parents. An amendment to the Federal Reserve’s Card Act rules that took effect last October was intended to keep young consumers from using their parents’ income to qualify for a credit card and then racking up thousands of dollars of debt in their own name. But it also had the unintended consequence of denying stay-at-home moms and dads, who rely on a spouse’s income, access to credit, even if they have perfect credit.
After gathering information and input from the public this summer, it was determined that it is a significant problem. There are hundreds of thousands of people who perhaps have been denied access to credit as a result of a specific interpretation of the Credit Card Accountability Responsibility and Disclosure Act, known as the CARD Act.
Rather than amend or clarify the current legislation, the Consumer Financial Protection Bureau determined to proceed with rule-making and adjust the income standard. The CFPB is aiming to make it easier for stay-at-home spouses to obtain credit cards in their own name as well as larger lines of credit. Notably, the CFPB plans to propose a new rule by November that allows credit card issuers to consider household income on applications from nonworking spouses.
Not only the CFPB but also groups representing banks agree that changes are needed. Stay-at-home spouses and those working part time lost their opportunity to gain financial independence when the Fed wrote the requirement.
Latest Other Card News
Credit scores and credit reports have become an integrate part of our lives and financial health. There are a lot of services that allow to check credit reports online and FreeCreditReport.com is one of them. FreeCreditReport.com is owned and operated by Experian, one of the three major credit bureaus in the U.S. The service provides […]
If your wallet is bulging with store loyalty cards, there’s good news for you from Samsung Pay. The most widely accepted mobile digital wallet system in the United States is now allowing users to upload their store membership and rewards cards onto their Samsung Galaxy smartphones.
Identity theft and banking fraud concern more and more Americans, according to a recent FICO survey. And that is not a surprise as credit card fraud continues to grow, especially online fraud.
There is no foolproof way to protect yourself from fraud, but there are a few things you can do. The first and foremost thing you should do is never ever give your credit or debit card information to someone you do not know.
Springtime is the season for house hunting, but many people planning to move this year say they’ll rent, not buy, their new digs.
Online banking has revolutionized the way people do business with their banks, and one result is that fewer and fewer folks are actually stopping in to branches to do things like deposit checks, make withdrawals, and transfer money.