|Slaughter and Maloney Respond to FED Ruling on Credit CARD Act “Ability to Pay” Rules|
|March 18, 2011|
Lawmakers Say Ruling Will Unjustly Affect Stay-at-Home Moms
WASHINGTON – Reps. Carolyn Maloney (D-NY), principal author of the Credit CARD Act, and Louise Slaughter (D-NY), author of the law’s language aimed at curbing abuses aimed at those under 21 years of age, today released the following statement following a rule approved by the Federal Reserve that would require credit card issues to consider a consumer’s individual income before extending credit.
"When the Fed issued its proposed rule in December, we were concerned that applying a uniform standard of "independent ability to pay" – a protection specifically for vulnerable college-aged consumers - would negatively impact non-working spouses who are applying for credit. In talking with the Federal Reserve, they do not believe that being required to provide "income" on a credit card application will have any negative effect on spouses who do not work outside the home. However, we will be studying the implementation of the Fed's final rule and if there are problems in the way it is implemented, we will take them to Elizabeth Warren and the Consumer Financial Protection Bureau which will have the authority to write new rules beginning in July."
In January, Slaughter and Maloney wrote a letter to the Federal Reserve asking them to revise its proposed rule implementing the “ability to pay” requirements in the Credit CARD Act, which could curb the availability of credit to stay-at-home moms and other adults without certifiable income.
A copy of their letter is available here.