The Federal Reserve’s proposed amendment to
Regulation Z of the Credit Card Accountability Responsibility and
Disclosure (CARD) Act of 2009 may have drawn many critics
but the controversial rule has been passed.
The Fed claims the changes have been made to
enhance protections for consumers that use credit cards and resolve
areas of uncertainty so that card issuers “fully understand their
compliance obligations”.
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Rather than consider a consumer’s ‘household
income’, issuers must now consider the consumer’s individual income
or salary as the term is deemed ‘too vague’ and does not allow
issuers to properly evaluate the consumer’s ability to pay.
US companies such as Dress Barn, Home Depot
and Citigrouphit out at Fed once the proposal was announced, back
in December 2010, claiming the rule would unfairly restrict
stay-at-home mothers and act as a setback for women’s rights.
“It is astonishing that people have forgotten
how difficult it was 40 years ago, particularly for women, to
establish credit,” Anne Fortney, a lawyer at Hudson Cook LLP told
the Wall Street Journal.
“This would really take a lot of women back to
where they were in the early 1970s.”
US Tariffs are shifting - will you react or anticipate?
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By GlobalData
