Credit Card Rules Amended by Fed to Avoid Issuance to People Who Cannot Pay

The Federal Reserve approved a rule that would require credit card issuers to consider consumers’ individual incomes before extending credit, Bloomberg News reported on Friday. Credit card applications generally cannot request “household income” because that term is too vague for issuers to evaluate whether customers will be able to make the required payments on the accounts, according to a statement from the Fed on Friday. The rule is needed to prevent making credit available to consumers who lack the ability to pay, the Fed said. The change is supposed to limit issuers from giving cards to college students, yet some lawmakers are concerned that stay-at-home spouses will suffer. Read more.

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