Why stay-at-home spouses may be denied credit cards - FOX Carolina 21

Why stay-at-home spouses may be denied credit cards

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It's been on the books for years, but protests and possible action are shedding light on a little-known loophole in rules that may exclude stay-at-home spouses from getting credit cards.

Known as The CARD Act Rule, it simply says that people over the age of 21 have to have an ability to re-pay before they ever get a credit card.  But the rule it doesn't take into account those who stay at home full-time. Their job is caring for their children, but their income is zero.

The CARD Act was implemented as a way to protect consumers from deceptive credit card practices, namely college students. But critics say the wording of the law makes it so it also affects anyone else who doesn't have an income. They also argue that a non-working spouse would have to ask their working partner for permission before getting a credit card.

The American Bankers Association (ABA) says "something was lost in translation" at the Federal Reserve on the rule and emphasized that stay-at-home spouses have the ability to re-pay, and since they don't have income, they have to report household income.

Rep. Trey Gowdy, a Republican representing South Carolina's Fourth Congressional District,  says, it's a terrible regulation, one that was passed before he came to Congress. 

"Many of my Republican colleagues warned that this would happen," says Gowdy. "If given a chance - with a Republican president and a Republican Senate - we will roll back nonsensical regulations like this one."

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