New Laws Could Make It Harder For Those Without Income To Accumulate Debt
Prior to the recession, it was easy for many consumers to simply sign on the dotted line and achieve access to credit and rack up hundreds or thousands of dollars in debt.
However, it may soon be harder for those without fixed incomes to achieve access to credit, as the Federal Reserve plans to pass new legislation on the issue in the coming weeks.
The regulations would mandate that credit card issuers consider a borrower's independent rather than household income when reviewing credit card applications, The Wall Street Journal reports. Retailers have rallied against the announcement, with Dress Barn, Home Depot and Citigroup all voicing their dissent over the proposed actions.
The retailers say the bill would make it more difficult for customers to get store credit cards, especially stay-at-home moms, and increase the likelihood of in-store application declines, the news source says.
Proponents of the bill say the new regulations would increase consumer protection and make it difficult for those without financial means to incur debt.