Prove You Can Pay

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Replied by rlee1918 on topic Re: Prove You Can Pay

Does this mean exsiting accounts too? So cards I already have they can't increase unless I prove my income or is that for new accounts only? I've always lied on my apps to get better cards, never once been asked for proof, now I don't have a job and I have about 18 cards just wondering what will happen.
10 years 6 months ago #1
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Replied by Meya on topic Re: Prove You Can Pay

Cant aruge about that one :laugh: :laugh:
10 years 6 months ago #2
  • Wanderer
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was created by Wanderer

Fellow FG Readers]

Try this information:


New 800-page rules document requires card issuers to confirm ability to pay

By Connie Prater

Applying for a new credit after February 2010? Be prepared to lay your financial records on the table for credit card issuers.
In more than 800 pages, proposed rules issued Sept. 29 by the Federal Reserve Board outline what credit card issuers can consider when deciding to grant new credit cards to customers or increase credit limits on existing accounts.

Currently, credit card applicants typically fill out applications declaring their annual income but providing no proof. Of the major credit card issuers, only American Express currently asks for income tax returns for its applicants. After Feb. 22, 2010, applicants may be asked to pony up the following kinds of proof of ability to repay credit card debts:
  • Salary, wages, bonus pay, tips and commissions from full- or part-time, seasonal, military or irregular jobs and self-employment.
  • Interest, dividends, retirement benefits, public assistance, alimony checks, child support and other kinds of maintenance payments.
  • Savings accounts or investments.
  • Credit reports and credit scores.
The proposed rules provide guidelines to direct the issuers of credit cards in implementing the second phase of the Credit Card Act of 2009, a federal law signed by President Obama in May. The law mandates the most sweeping changes in credit card industry history and seeks to safeguard consumers against what the Federal Reserve calls "unfair or deceptive" trade practices.

"This proposal is another step forward in the Federal Reserve's efforts to ensure that consumers who rely on credit cards are treated fairly," Fed Gov. Elizabeth A. Duke said in a press release. "The rule bans several harmful practices and requires greater transparency in the disclosure of the terms and conditions of credit card accounts."

New 'proof of income' rules

The new income guidelines unveiled Sept. 29 were developed to satisfy a provision in the credit card law stating that applicants must show they have the means to make minimum monthly payments on credit card debts. The clause was incorporated into the law to address America's growing credit card debt burden and prevent instances of people with relatively low incomes receiving multiple credit cards with high credit limits. The guidelines direct banks develop reasonable policies and procedures to determine ability to pay.

"The Board believes an evaluation of a consumer's current ability to pay must include a review of the consumer's income or assets as well as the consumer's current obligations," according to the Fed. "A card issuer has not complied with this provision if, for example, a card issuer does not review any information about a consumer's income, assets, or current obligations, or issues a credit card to a consumer who does not have any income or assets."

Information provided from Credit Cards . com
10 years 6 months ago #3