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drkaje
Senior Contributor

Re: applying for new credit or cli


@haulingthescoreup wrote:

@bichonmom wrote:

@Anonymous wrote:

@Chris123nTx wrote:
As a single parent, this really irks me. I mean its tough being a single parent, and you two have the great fortune to be able for you to stay home with your kids. It is such a good, positive thing you are doing and rather than being rewarded for it, you are punished.

That is what we call the unintended consequences of government regulation....well we can at least hope that it was not inteded, although younever know.


Certainly interesting to know if it was intended or not.  The stated reason was teenagers claiming their parents income.  However, it would seem this could be easily avoided by allowing you to use the combined income of you and your spouse.  This is a huge blow to stay at home parents (moms or dads).  It makes these people so much more financially reliant on their spouse, which is one common reason people do not leave abusive relationships.  Pretty unfortunate part of the new law IMO.



+1!!! This could have easily been avoided just by what you wrote above. And it is scary to think that women may be stuck in a relationship (either abusive, or one they want to leave) because they can't even get credit in their own names. It is really a blow to women's rights IMO.

 


This is exactly why FICO backed down on excluding AU cards from scoring in FICO 08 or whichever one it was that they were proposing this (I've lost track, lol.) It was considered a potential violation of the Equal Credit Opportunity Act.

 

I'd like to see a consumer group/ women's group challenge the constitutionality of this one provision on that basis.


Are you arguing there's a constitutional right to credit access?

 

I realize this is a sensitive topic that affects many but the laws are really designed to protect the banks, not us. Smiley Happy


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Message 21 of 24
tinuviel
Moderator Emeritus

Re: applying for new credit or cli


@haulingthescoreup wrote:

@bichonmom wrote:

@Anonymous wrote:

@Chris123nTx wrote:
As a single parent, this really irks me. I mean its tough being a single parent, and you two have the great fortune to be able for you to stay home with your kids. It is such a good, positive thing you are doing and rather than being rewarded for it, you are punished.

That is what we call the unintended consequences of government regulation....well we can at least hope that it was not inteded, although younever know.


Certainly interesting to know if it was intended or not.  The stated reason was teenagers claiming their parents income.  However, it would seem this could be easily avoided by allowing you to use the combined income of you and your spouse.  This is a huge blow to stay at home parents (moms or dads).  It makes these people so much more financially reliant on their spouse, which is one common reason people do not leave abusive relationships.  Pretty unfortunate part of the new law IMO.



+1!!! This could have easily been avoided just by what you wrote above. And it is scary to think that women may be stuck in a relationship (either abusive, or one they want to leave) because they can't even get credit in their own names. It is really a blow to women's rights IMO.

 


This is exactly why FICO backed down on excluding AU cards from scoring in FICO 08 or whichever one it was that they were proposing this (I've lost track, lol.) It was considered a potential violation of the Equal Credit Opportunity Act.

 

I'd like to see a consumer group/ women's group challenge the constitutionality of this one provision on that basis.


 

+1 -- to all of the above.


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Message 22 of 24
Anonymous
Not applicable

Re: applying for new credit or cli


@drkaje wrote:

@haulingthescoreup wrote:

@bichonmom wrote:

@Anonymous wrote:

@Chris123nTx wrote:
As a single parent, this really irks me. I mean its tough being a single parent, and you two have the great fortune to be able for you to stay home with your kids. It is such a good, positive thing you are doing and rather than being rewarded for it, you are punished.

That is what we call the unintended consequences of government regulation....well we can at least hope that it was not inteded, although younever know.


Certainly interesting to know if it was intended or not.  The stated reason was teenagers claiming their parents income.  However, it would seem this could be easily avoided by allowing you to use the combined income of you and your spouse.  This is a huge blow to stay at home parents (moms or dads).  It makes these people so much more financially reliant on their spouse, which is one common reason people do not leave abusive relationships.  Pretty unfortunate part of the new law IMO.



+1!!! This could have easily been avoided just by what you wrote above. And it is scary to think that women may be stuck in a relationship (either abusive, or one they want to leave) because they can't even get credit in their own names. It is really a blow to women's rights IMO.

 


This is exactly why FICO backed down on excluding AU cards from scoring in FICO 08 or whichever one it was that they were proposing this (I've lost track, lol.) It was considered a potential violation of the Equal Credit Opportunity Act.

 

I'd like to see a consumer group/ women's group challenge the constitutionality of this one provision on that basis.


Are you arguing there's a constitutional right to credit access?

 

I realize this is a sensitive topic that affects many but the laws are really designed to protect the banks, not us. Smiley Happy


While there is obviously no constitutional right to credit access, it can certainly be considered discriminatory to not be willing to consider household income.  The government taxes you as a household.  The person who does not work contributes to the household in many ways and legally that income is joint income.  While my wife and I work, we don't make the same money.  Legally though, all the money we both make is both of ours.  I don't have my money while she has hers.

 

This is supposedly designed to protect the banks but it has a pretty major side effect on those who do not work while their spouse does.  Whether intended or not, it has a very unfortunate impact in the relationship power.  If a stay at home mother for example has no credit history of her own, it will be extremely difficult to leave an abusive relationship.  Where will you go?  You won't get an apartment without credit.  You can't buy a car or a home.  The power imbalance created here is very great.  The old system was working fine.

 

What happened is that students started gaming the system and claiming their parents' income as their own.  This is what the law was supposedly preventing.  But this is easily fixed both ways by only counting household income between spouses.  There was no stated problem by the politicians crafting this legislation of spouses receiving credit they didn't deserve.  It was very clearly stated to be addressing predatory lending to college students.  It well overstepped that boundary.

Message 23 of 24
haulingthescoreup
Moderator Emerita

Re: applying for new credit or cli


@drkaje wrote:

@haulingthescoreup wrote:

@bichonmom wrote:

@Anonymous wrote:

@Chris123nTx wrote:
As a single parent, this really irks me. I mean its tough being a single parent, and you two have the great fortune to be able for you to stay home with your kids. It is such a good, positive thing you are doing and rather than being rewarded for it, you are punished.

That is what we call the unintended consequences of government regulation....well we can at least hope that it was not inteded, although younever know.


Certainly interesting to know if it was intended or not.  The stated reason was teenagers claiming their parents income.  However, it would seem this could be easily avoided by allowing you to use the combined income of you and your spouse.  This is a huge blow to stay at home parents (moms or dads).  It makes these people so much more financially reliant on their spouse, which is one common reason people do not leave abusive relationships.  Pretty unfortunate part of the new law IMO.



+1!!! This could have easily been avoided just by what you wrote above. And it is scary to think that women may be stuck in a relationship (either abusive, or one they want to leave) because they can't even get credit in their own names. It is really a blow to women's rights IMO.

 


This is exactly why FICO backed down on excluding AU cards from scoring in FICO 08 or whichever one it was that they were proposing this (I've lost track, lol.) It was considered a potential violation of the Equal Credit Opportunity Act.

 

I'd like to see a consumer group/ women's group challenge the constitutionality of this one provision on that basis.


Are you arguing there's a constitutional right to credit access?

 

I realize this is a sensitive topic that affects many but the laws are really designed to protect the banks, not us. Smiley Happy


Thanks for the catch. You're right, I shouldn't have written "constitutional." It does appear to conflict with the provisions of the ECOA. Happily, I'm not an attorney, so I don't know what it's called when one law conflicts with rights or protections provided by another.

 

Anyone know how this works? I'm at home on a collection of interesting meds, so what passes for critical thinking on my part has gone out the window today. Smiley Very Happy

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 24 of 24
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