New federal law prevents stay at home parents and others from getting credit cards
Wed, 04 May 2011 15:26:25 GMT —
A new federal law could keep stay at home parents and military families from getting a credit card.
NBC10 reports the regulation prevents banks from giving credit cards to people who can't prove an individual source of income.
The goal is to keep people who can TMt afford the card from getting into debt that they cannot pay. However, opponents say stay at home parents and people who have spouses in the military should be exempt from the regulation.
One blogger on the website money.usnews.com is calling the law biased against stay at home mothers. Author Kimberly Palmer writes, sure, she [the stay at home mom] can be an authorized user on her husband TMs card or use a secured card that's pre-loaded with cash, but neither of those solutions offers the same flexibility or freedom that comes from having a card of her own. She also claims that this new law could make it difficult for victims of domestic abuse to leave their home, because they would not have access to their own credit cards. As well, Palmer says it could complicate financial issues in divorce cases.
The rules go into effect in October, but banks can begin enforcing the issue at any time.
How do you feel about this regulation? Is it going to keep people from going into debt, or does it hurt stay at home parents and military families? Leave us your comments below.