The Consumer Financial Protection Bureau has revised rules on the 2009 CARD Act, paving the way for non-working spouses and partners to qualify for credit cards.
The Credit Card Accountability Responsibility and Disclosure Act was designed to rein in some of the egregioius practices of card issuers, such as handing out lines of credit to college students who didn't even have jobs. The banks counted on mom and dad to step in if junion got in over his head.
One of the provisions of the law, though, was that a card company had to make sure consumers had the ability to pay before issuing them a credit card or raising their credit limit. This meant that card companies had to look at the applicant's income.
But some worried that stay-at-home parents or partners might be penalized. They have a mate's income to rely on, but don't have their own paycheck.
The CFPB said it has now revised the regulations. Card companies can now take the income of a third party into account for applicants age 21 and up.Copyright © 2014, The Baltimore Sun