topic Re: Proposed Rule Requiring Customers to Show Income Data Before Opening Accounts!!!!!!!! in Credit in the News

Proposed Rule Requiring Customers to Show Income Data Before Opening Accounts!!!!!!!!

Ron1 — Mon, 07 Dec 2009 16:05:31 GMT

link:

http://online.wsj.com/article/SB20001424052748704825504574579793850175348.html

Ron.

Re: Proposed Rule Requiring Customers to Show Income Data Before Opening Accounts!!!!!!!!

Anonymous — Mon, 07 Dec 2009 16:38:50 GMT

There's no way people will get out their pay stubs and tax returns at a store checkout. I don't know what they'll to to change the instant credit rules, but I know that won't be happening.

I've never understood why income is not part of a credit report. I'm not saying it should be, but I'm wondering what kind of law prevents its inclusion. You know that CRA customers would love to have that information.

Re: Proposed Rule Requiring Customers to Show Income Data Before Opening Accounts!!!!!!!!

MMart078 — Mon, 07 Dec 2009 16:38:52 GMT

This rasises a couple of interesting questions. One should fico start obtaining income information from the IRS (like AMEX does sometimes)? Because this is indeed part of ones credit worthiness. I mean they already score our credit files with no regard to income. The thing it does not take into account is income, the primary factor in paying any debt. Any thoughts anyone else?

Re: Proposed Rule Requiring Customers to Show Income Data Before Opening Accounts!!!!!!!!

MMart078 — Mon, 07 Dec 2009 16:39:34 GMT

I agree one hundred percent.

Re: Proposed Rule Requiring Customers to Show Income Data Before Opening Accounts!!!!!!!!

Anonymous — Mon, 07 Dec 2009 16:43:37 GMT

@MMart078 wrote:
This rasises a couple of interesting questions. One should fico start obtaining income information from the IRS (like AMEX does sometimes)? Because this is indeed part of ones credit worthiness. I mean they already score our credit files with no regard to income. The thing it does not take into account is income, the primary factor in paying any debt. Any thoughts anyone else?

Income information can be obtained from Social Security Administration. Either way, income info need to remain off credit reports.

Re: Proposed Rule Requiring Customers to Show Income Data Before Opening Accounts!!!!!!!!

Anonymous — Mon, 07 Dec 2009 17:19:45 GMT

More and more meddling...

So, where does it go after that? It can't just stop there. We're talking big government, folks!

Will the Feds mandate what income level is needed before credit is issued (of any kind, of any amount, from any lender, for any purpose) ? Seems like they'd have to come up with an acceptable, federally approved magic number...otherwise, why ask about income?

And will the source of that income be a factor? IMO, it will be. I won't discuss who will be the preferred credit risk, or why.

I extend credit to my customers (not via private label credit cards, but there's no practical difference), and it will be a cold day in hell before the government tells me who I can or cannot extend credit to on my own hook. It is an integral part of my business model, I take all the risk, and it is none of the government's business, period.

I guess at some point I'll get a visit from enforcers sent by the credit czar...

Re: Proposed Rule Requiring Customers to Show Income Data Before Opening Accounts!!!!!!!!

fused — Mon, 07 Dec 2009 17:21:51 GMT

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Re: Proposed Rule Requiring Customers to Show Income Data Before Opening Accounts!!!!!!!!

Anonymous — Mon, 07 Dec 2009 17:36:11 GMT

@MMart078 wrote:
This rasises a couple of interesting questions. One should fico start obtaining income information from the IRS (like AMEX does sometimes)? Because this is indeed part of ones credit worthiness. I mean they already score our credit files with no regard to income. The thing it does not take into account is income, the primary factor in paying any debt. Any thoughts anyone else?

To a point, I would agree. On the other hand, you have millions of older, retired credit consumers with NO income at all! This doesn't mean they aren't able to pay their credit card bills. If that were a required basis for giving out credit, you can forget seniors. Additionally, there are many people out there with no "reported" income that still have plenty of money to spend (myself included). I guess my point is... You don't need an income to have money which is probably why it isn't a standing requirement already.

Re: Proposed Rule Requiring Customers to Show Income Data Before Opening Accounts!!!!!!!!

Anonymous — Mon, 07 Dec 2009 17:55:50 GMT

fused, with all due respect, it is difficult to comment on proposed government regulations without mentioning the government.

There is no partisan stance here, I believe my comments are on topic and comply with TOS, and no offense is meant to any group or any individuals. If my disagreement with these proposed regs is political, then anyone agreeing with these proposed regs is being political, too...so why offer this thread to comment at all?

I won't be offended if you go ahead and delete my previous post in the interests of friendly, supportive and respectful, but I just don't see where my comments are so off-base as to be publicly warned about them.

Re: Proposed Rule Requiring Customers to Show Income Data Before Opening Accounts!!!!!!!!

haulingthescoreup — Tue, 08 Dec 2009 00:11:43 GMT

I don't want my income reported on CRA reports.

It's hard enough to get them to update balances, CL's, and so forth. And how many of you have ever tried to get them to correct an error???

I can very easily see having an $85,000 income (not mine, alas) reported as $8,500. How long do you think it might take to correct that, what would be involved in convincing the CRA's that they were wrong, and what might happen to one's accounts in the meantime?

Huh-uh. If a lender wants to know my income, I can fax pay stubs or whatever. Keep it off my credit reports, please. Income does not equal credit, and therefore, it doesn't belong there.

Re: Proposed Rule Requiring Customers to Show Income Data Before Opening Accounts!!!!!!!!

Anonymous — Tue, 08 Dec 2009 20:32:58 GMT

Income does not equal credit, and therefore, it doesn't belong there.

I agree. Income also doesn't always equal responsible credit management.

Re: Proposed Rule Requiring Customers to Show Income Data Before Opening Accounts!!!!!!!!

laz98 — Wed, 09 Dec 2009 06:38:19 GMT

right on!

Re: Proposed Rule Requiring Customers to Show Income Data Before Opening Accounts!!!!!!!!

Anonymous — Wed, 09 Dec 2009 14:26:24 GMT

I think that income added to a CR, like communism, works in theory. In otherwords, people with higher income *should* be able to handle more credit. Unfortunately, it doesn't work that way and the exceptions are too numerous to make adding income appropriate.

For example, for someone like me that's making a ton (well a decent amount) right now but will go down by over 60% in 9 months when I go back to school...that would be horrible to see my credit limits cut just because I'm trying to get my PhD. With the clean payment record as well, it would be foolish for the companies to do that - I'd just drop them.

Also, as someone else mentioned, when retired you might not ever get a paycheck, but you could have millions in accounts.

So I don't think this will ever work in real life....my two cents.

Re: Proposed Rule Requiring Customers to Show Income Data Before Opening Accounts!!!!!!!!

BungalowMo — Wed, 09 Dec 2009 15:39:58 GMT

High Income does not = High Credit IQ or a High FICO

Re: Proposed Rule Requiring Customers to Show Income Data Before Opening Accounts!!!!!!!!

marty56 — Sat, 12 Dec 2009 12:55:10 GMT

@Anonymous wrote:
I think that income added to a CR, like communism, works in theory.

Lucky for us neither works in real life or any other type of life. Unless of course the person is in charge or has a high income but a poor credit history.

When I went to refi my home I had to show the last 2 paystubs and my last 2 income tax returns. For those who's income is based on sales or providing services like massage (DW), I dont see is fair way to assign credit or even a CL since income could vary from month to month. Part of having a high CL is that the lender assumes that you wont charge more than you can pay, otherwise all CCs would be secured.