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Established Contributor
cashnocredit
Posts: 1,012
Registered: ‎07-18-2009
0

Re: Household Income Question

HEY!

 

Did you guys miss that fact that the CFPB regs don't permit them to ask for "household income?"  If they do they are violating the CARD act.  Household income is a really dated app question.

I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

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Valued Contributor
CreditScholar
Posts: 2,300
Registered: ‎01-22-2012
0

Re: Household Income Question


cashnocredit wrote:

HEY!

 

Did you guys miss that fact that the CFPB regs don't permit them to ask for "household income?"  If they do they are violating the CARD act.  Household income is a really dated app question.


Ask the OP.

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Super Contributor
enharu
Posts: 6,889
Registered: ‎02-27-2013
0

Re: Household Income Question

[ Edited ]

I think I'll have to agree more with CreditScholar on this.

 

In the article posted by cashnocredit earlier (link here again: http://www.consumerfinance.gov/pressreleases/the-cfpb-amends-card-act-rule-to-make-it-easier-for-sta...), it clearly states that "For credit card applicants who are 21 or older, the Bureau’s revision allows card issuers to consider third-party income if the applicant has a reasonable expectation of access to it."

 

And all along on credit card apps, you CAN exclude whatever income that you do not wish to be taken consideration for your credit card app. 

For example you might have overseas income that is just messy to prove in the event of an FR, so you want to exclude it altogether to save yourself some trouble, and simply base the app on your US income. Or it could be that you do not want to include income from a judgement, alimony, for whatever reason, may it be due to personal pride or whatever.

 

It really becomes a problem when you overstate your income, not understate it. When you understate your income, that bank probably gave you a lower CL than what you originally deserved. But for people who overstated their income, they might have gotten approved for something that they otherwise should be been rejected. And not to mention it is illegal. 

 

It's always going to be a rosy and happy picture until they get into trouble.

 

 

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