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Rules revised regarding credit for stay at home spouses

On Behalf of | May 8, 2013 | Credit Card Debt

Credit cards may be used for a variety of different reasons. Some people use credit cards to build credit and help get better rates on loans for larger items after they have a higher credit score. Others use credit cards as a way to supplement income to buy things that are needed or wanted. Unless credit cards are used in smart ways, many people find themselves buried with credit card debt, and being harassed by a credit card company for money they cannot pay.

After more than a year of complaints from stay at home spouses throughout the country, the Consumer Financial Protection Bureau finally made adjustments to regulations about how people can get credit cards. Many women felt the rule that was developed during the time the CARD Act was written was insulting to women who stay home while their husbands support the family financially.

Spouses who stayed home and had no income were unable to obtain credit cards because the rule stated that the credit card company should only consider the income of the person applying for the card. The CFPB responded to complaints that they had gone too far by allowing people with reasonable access to another income to claim that money on their credit application.

With so many people in a debt crisis, the rule may have been put into place in order to protect consumers from borrowing money they could not afford to pay back. When a person owes too much money in credit card debt, bankruptcy may be the next option. Anyone who is being harassed by creditors may benefit from meeting with an attorney to discuss ways to clear the slate and start a fresh financial future.

Source: TIME, “CFPB finally fixes the Anti-Housewife Rule,” Martha C. White, May 2, 2013

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The Law Office of Kim Covington is a debt relief agency, and I have helped families, individuals and small businesses, file for bankruptcy relief under the U.S. Bankruptcy Code, for over 23 years.