Oct. 18, 2012 – Concerns raised by NAFCU and its members over a current ban on the use of “household” income in the evaluation of credit applications have been heeded by the Consumer Financial Protection Bureau, which is proposing a fix on this issue.
NAFCU urged all along that credit unions continue to be able to use household income when evaluating credit-card applications of spouses who do not draw income, said association General Counsel and Vice President of Regulatory Affairs Carrie Hunt. “NAFCU is heartened to see the CFPB address this issue,” she said. NAFCU is reviewing the proposal and preparing a Regulatory Alert seeking members’ input.
The CFPB today proposed updates to its Regulation Z rules on credit applications to make it easier for spouses or partners who do not work outside of the home to qualify for credit cards. The proposal, it says, would allow a stay-at-home spouse or partner to rely on shared income from his or her spouse or partner when applying for a credit card account.
“When stay-at-home spouses or partners have the ability to make payments on a credit card, they should be able to obtain a card in their own name,” said CFPB Director Richard Cordray. “Today the CFPB is proposing common-sense changes that would facilitate credit access for spouses or partners who do not work outside the home.”
For more, see the CFPB announcement and proposed rule.