Gilmer Free Press

Capito Says CARD Act Is Being Applied Incorrectly and People Are Unfairly Being Denied Credit

West Virginia’s Second District Congresswoman is one of the people trying to fix, what she calls, an “unintended consequence” of the 2009 Credit Card Accountability Responsibility Act.

As part of the CARD Act, lawmakers took steps to try to limit credit card solicitations to young people.  That part of the Act required credit card companies to assess the potential ability of cardholders, under the age 21, to repay any extended credit.

Congresswoman Shelley Moore Capito says the Federal Reserve took it a step farther, though, and applied it to anyone’s independent income and ability to pay, including parents who stay at home and spouses of those in the military.

“They have been getting denied credit, independent credit.  They cannot get credit regardless of their credit scores.“  Congresswoman Capito says that is because the entire household budget is not being taken into account as it should be.  She says that is not what lawmakers were trying to do with the provision.

“There was no intent in Congress to shut down the ability of stay at home spouses to acquire credit.  It was aimed at a student, mostly, who was getting these solicitations,“ the Congresswoman said.

She is Chairman of the U.S. House Subcommittee on Financial Institutions and Consumer Credit and led a hearing, earlier this week, focused on the ability to pay requirement of the CARD Act.

Congresswoman Capito says those with the Consumer Financial Protection Bureau could issue some clarification within the next month.

“We’re working with the regulators to try to fix this,“ she said.  “I hope it can be done through regulation because that probably be quicker but, if we have to legislate it, we will.“