The Federal Reserve is proposing a rule to clarify the new Credit Card Act that could have unintended consequences for stay-at-home moms who attempt to get credit at retail locations. The Weekly Standard wrote that the act appears to require retailers to consider an applicant's independent income, rather than household income, meaning that those without income could find themselves denied credit.
The Standard quoted a Wall Street Journal article that elaborated on the situation: " Under the proposed rule, if a customer with no income requested credit on the spot, he or she wouldn't qualify for it unless a higher-earning spouse applied jointly.
“The proposed clarification would have a chilling effect on the willingness of customers to apply for store credit because of the embarrassment of being denied credit at the point-of-sale, and the possibility of being told by a store clerk in front of other customers that she must have her husband co-sign for the account.”
As a stay-at-home mom who works from home but that doesn't receive a regular paycheck--and one who couldn't "prove" that I have independent income apart from my husband--this is rather chilling to read. Such changes as this would yank us back into the 1950s and 1960s--and earlier--where women could not conduct financial matters without their husband's permission.
Hopefully, this rule will not become permanent.
Until next time,
Sarah
The Standard quoted a Wall Street Journal article that elaborated on the situation: " Under the proposed rule, if a customer with no income requested credit on the spot, he or she wouldn't qualify for it unless a higher-earning spouse applied jointly.
“The proposed clarification would have a chilling effect on the willingness of customers to apply for store credit because of the embarrassment of being denied credit at the point-of-sale, and the possibility of being told by a store clerk in front of other customers that she must have her husband co-sign for the account.”
As a stay-at-home mom who works from home but that doesn't receive a regular paycheck--and one who couldn't "prove" that I have independent income apart from my husband--this is rather chilling to read. Such changes as this would yank us back into the 1950s and 1960s--and earlier--where women could not conduct financial matters without their husband's permission.
Hopefully, this rule will not become permanent.
Until next time,
Sarah
