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SmartCredit.com Consumer Education President John Ulzheimer and Holly McCall on the impact on stay-at-home parents of a new rule that requires people ...
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Meanwhile another unintended consequence from government intervention this time hurting stay at home parents.
-- home mom Hollywood called denied a target credit card.
Because a new law requires applicants to have an individual income or co sign with a spouse now.
She started a petition against this and delivered it to the consumer financial protection agency.
Alec joins me -- -- -- story along with -- credit dot com's John Alzheimer welcome to you both holly tell us your story first if you would.
I a and I thank you for having me -- I.
And my story I and then stay at home mom I have two young people ways.
And I a applied for a target credit -- and I -- -- -- because I'm a stay at home mom.
And then -- 95% of our household finances and in a completely equal partner in all of our major households financial decisions.
On so -- Felt that it is really to meaning that they needed permission to get a credit card now did you call target complaining that he did what they say.
Not -- directly to target because my understanding was they were following the lot by asking only for May individual income so.
-- filed a complaint with the Consumer Financial Protection Bureau.
And you're working with them -- you what's on here what it out -- mom who cares.
She should get a credit card should pay for cancer decision if she can afford right.
I agree across the war and -- a -- -- this is an absolute travesty.
It's actually kind of -- it undermines what the hypothesis of a card act is which is to keep people who don't have -- comes out of credit card debt which kind of makes sense of the hypothesis by.
It also ignores the fact that most stay at home parents whether it's a mother or father of of -- children.
Have access to the household income in like -- said.
She manages the vast majority of the households financial lack of -- transactions.
Which means that she's probably paying the bills every single month writing checks to creditors may be paying them online -- just watch.
That's for creditors are most interest today are they gonna get paid that is simply shut out this segment of the population.
Is very very shortsighted frankly district.
Well I think the point -- You're -- Consumer Financial Protection Bureau what are they telling you.
And they have been telling -- that they.
Do understand.
The perspective and that it is not just me it is many Americans that think that this is unfair.
And they are going to be.
Investigating the issue to understand -- the scope and let us know what they find.
I just you -- it seems to me that this is sort of you know the government hurting us by trying to protect this.
And really short sighted here.
Do you think about turret returns over -- -- really directed at college students I think they're really trying to college students not to get credit cards they rack up a lot of debt.
Could be at the end of the day it's -- the consumer's decision what they spend and if they want to spend right.
That's is that current my guess is that holly it's -- more than eighteen -- -- she's an adult and she can make a decision about it she wants to apply for credit card.
Without having a half her husband or someone else cut aside and basically give her -- -- -- permission to get.
This is also look let's.
Let's not just broke target under the bus here this also hurt target because they lost a new credit card customer.
At the same time -- hitting as many -- would go more often if she had access to -- A target credit -- I don't now.
But -- this is something that a lot of retailers complain about.
Very.
It vigorously August -- first came out especially new -- This specifically target women and not realize lock this is gonna hurt us because you're basically chopping off the segment.
About our population and new customers are gonna be harder to come by because now I'm gonna have to make them prove.
That they actually have any comment I don't wanna turn away so cut those customers because I know that most of them have access to you.
Household income which pays just as well as an individual and -- well.
And you know those idiots in Washington once again making those happen -- intelligent decisions highly shortsighted you out.
Did you develop to petition gotten lots -- reaction what are other people tell according hearing out there from people who -- here in the same position you are.
What I'm hearing from other people and not just a signers of the petition but my friends is that actually didn't realize that this has happened.
So there really glad that I and bringing it -- their attention as well is that consumer financial protection Perez attention.
Are in which your next step -- have something that's gonna do next street just waiting to hear back from the bureau.
I'm -- continued -- eight.
Have signatures.
Entity collecting knows that change that -- And continue to keep the -- -- ion -- progress we're making with the petition and looking for updates from -- and we expect to hear.
An update ion what -- fines in about a month.
All right so you gotta come back if that's -- -- -- and John both John last word here as we wrap this thing up.
The irony would be if the Consumer Financial Protection Bureau which was founded really designed by Elizabeth Warren he was very pro women's right -- You know.
If they decided to turn over a lot that they're supposed to be enforcing I mean.
This is like Gulliver you know -- tied up -- in east -- -- so big any can't do anything.
Canada's CF Phoebe turned -- on its head.
It's -- yeah.
Irony is they they ironies even more -- is used here that that the -- bill as originally written by Democrat out of New York I'm Carolyn Maloney and signed by democratic president.
So the irony doesn't end with just to see if PP yes to see if he'd be candidate does have rule writing authority and they can't.
This is actually very simple all I have to do is replace worn word went from individual to look household and then that is -- and everything else line.
And and -- -- I commend you for taking this to the streets like you -- and hopefully you are the cause.
Of the changed -- it's actually corrected and make it by any sensible law verses and and nonsense.
-- law excellent well holly and John thank you so much and look cute guys out there if you're watching the showing your thinking this is insane.
Sends an email let us -- will forward those -- emails on the CF BB we're happy to talk to them on your behalf.
Right.
