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Tue May 15, 2012, 05:26 PM

The Consumer Protection Bureau Will Review A Law That's Infuriating Homemakers

The Consumer Financial Protection Bureau has agreed to review a clause in the CARD Act that all but eliminates any chance for stay-at-home spouses to apply for credit, according to Change.org.

More than a year ago, the Federal Reserve decided consumers over 21 would only be able to apply for credit using their personal income rather than that of the entire household.

The clause was supposed to prevent college-aged students from taking out lines of credit based on their parents' income, but it basically elbowed stay-at-home parents out of the credit game altogether.

With no tangible income to report on loan applications, homemakers are effectively denied credit before they even apply, unless they get a spouse to co-sign. The impact on women has been undeniable, as they are 30 times more likely than men to stay at home.


Read more: http://www.businessinsider.com/cfpb-will-review-card-act-2012-5

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Reply The Consumer Protection Bureau Will Review A Law That's Infuriating Homemakers (Original post)
FarCenter May 2012 OP
exboyfil May 2012 #1
FarCenter May 2012 #2
lumberjack_jeff May 2012 #3

Response to FarCenter (Original post)

Tue May 15, 2012, 05:38 PM

1. I hate to question this but

what would keep this from being horribly abused? I can't see how your ability to pay is calculated based upon your family's income, but the responsibility for the debt only applies to the individual who does not work? Would you be willing to make such a loan? My wife is a stay at home mom, and all of her credit is tied to me I think (except for the Penny's card she had before she met me). Credit is not an entitlement especially unsecured credit associated with credit cards. I can see how you don't want women trapped in bad marriages without any opportunity to exit, but is giving them credit in this fashion the answer? What will it mean for those who structure their credit like my family does? Will banks want to leave the field if they are mandated to loan based upon family income, but are only able to collect from the non-working spouse (who may have no assets - those who game the system will ensure this as well).

I guess their are states in which debts of either spouse is the responsibility of the other spouse (community property) it really does not matter, but for states that are not community property?

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Response to exboyfil (Reply #1)

Tue May 15, 2012, 05:58 PM

2. Debt and Marriage: When Do I Owe My Spouse's Debts?

http://www.nolo.com/legal-encyclopedia/debt-marriage-owe-spouse-debts-29572.html

Whether you and your spouse are liable for each other's debts depends mostly on where you live. In the handful of states with "community property" rules, most debts incurred by one spouse during the marriage are owed by both spouses. But in states that follow "common law" property rules, debts incurred by one spouse are usually that spouse's debts alone, unless the debt was for a family necessity, such as food or shelter for the family or tuition for the kids. (These are general rules; some states have subtle variations in how they treat joint and separate debts.)


It would be imprudent to extend unsecured credit to a non-earning spouse in a common law state.

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Response to FarCenter (Original post)

Tue May 15, 2012, 06:56 PM

3. Good. This is the 21st century isn't it?

I don't want anyone signing me (and my credit rating) up for credit cards without my written consent.

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