Following a meeting with a group of stay-at-home mothers affiliated with grassroots organization MomsRising, CFPB Director Richard Cordray announced that the Bureau will revisit the CARD Act rule that restricts consumers over 21 years old from applying for credit by using household income. The rule, which the Federal Reserve implemented over a year ago, requires such consumers to use only personal income when seeking credit.
The rule was implemented to prevent college students from using their parents’ income to obtain credit. The rule has also made it more difficult for stay-at-home parents to obtain credit cards. This is especially true for women, who stay at home at a rate 30 times higher than men. “Denying someone a credit card because that person is a stay-at-home parent devalues the work of raising and caring for children and that person’s worth as a partner,” stated Kristin Rowe-Finkbeiner, Executive Director of MomsRising. Holly McCall, a homemaker from Vienna, Virginia, presented Cordray with a petition containing 45,000 signatures. She believes the rule “is demeaning and flat out unfair.”
Cordray promised to review the CARD Act rule and work with McCall to come up with a solution. The Bureau will offer a formal response within 30 days. McCall praised Cordray for meeting personally with her and the representatives of MomsRising, stating, “It’s clear the Consumer Financial Protection Bureau listened to the 45,000 voices asking them to change this rule which unfairly penalizes hard-working moms and dads. I look forward to working with Director Cordray to fix this glaring issue.”