WASHINGTON (5/6/13)--The Consumer Financial Protection Bureau's new credit access rule went into effect Friday and credit unions and others have until Nov. 4 to comply.
The regulatory changes, which were released early last week and published in the Federal Register on May 3, will allow credit card applicants who are 21 years of age or older to list joint-account income as an asset on credit applications. The regulation applies to all applicants regardless of marital status, but the bureau expects that it will ease access to credit particularly for stay-at-home spouses or partners who have access to a working spouse or partner's income.
Before this CFPB change, Regulation Z's ability-to-repay rule did not specifically address joint accounts or even checking accounts. It merely advised card issuers to take into account assets such as savings accounts when it determines whether it will allow an applicant to open a new card account or increase the credit limit on an existing account. The regulation, as originally written, created unintended issues for many couples and families.
For the regulatory changes, as published in the Federal Register, use the resource link.