The CARD Act, passed in 2009, is meant to help protect customers. One provision of the bill is that those that provide credit cannot issue credit unless the applicant can prove that they can repay it. The bill is causing some severe unintended consequences, however. Stay-at-home spouses are very possibly going to be losing financial freedom, under the provisions of this bill. Article source – CARD Act could strip stay-at-home partners of financial identity by MoneyBlogNewz.
Rules the CARD Act put together
To be able to safeguard customers from credit card abuses, the CARD Act has several provisions. In the Act, the way income is viewed changes. There are new rules for businesses. When applying for credit, “income” is very specific. It does not contain community property or household income. Instead, all income on an application for credit must be individual. This is meant to keep consumers from over-claiming income or qualifying for credit that they do not have the income to pay back.
Consumers get CARD Act feel
Stay at home parents may have a difficult time with the CARD Act rules. The CARD Act makes it extremely hard for someone who stays at home to get credit even though a partner working might bring home plenty of money. While this prevents individuals with no independent income from getting credit they may not be able to pay back, it also prevents stay-at-home spouses from building an independent credit history. Without credit, there can be less opportunity for jobs. That will make it harder on an individual if the relationship ends suddenly.
Problems with the CARD Act and property that belongs to a community
Married couples have “community property” in 10 of the 50 United States Partners have equal share of whatever is in the marriage according to the shared property law which could be changed with a pre- or post-nuptial agreement. For couples in community property states, the CARD act will require them to split their financial lives. The way the CARD Act works, those in other states are out of luck. One partner can’t help the other get any debt.
The CARD Act affects you also
The CARD Act provisions will be really hard on any person who’s a stay-at-home partner. Are you a stay-at-home partner without a job? Just prepare to have to get your partner’s signature on anything from unsecured loans to credit card. This means that establishing your own, independent credit history is very important. Make an effort to keep some kind of employment going. Also, talk about finances with your partner regularly.
Information from
NCLC
nclc.org/
The Library of Congress
thomas.loc.gov/cgi-bin/bdquery/z?d111:HR00627:@@@D&summ2=m&
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