We are continuing our discussion from our last post. The Federal Reserve Board has issued a rule that lawmakers believe runs counter to the spirit of the law. The law is the 2009 Credit CARD Act. The rule, according to a group U.S. Representatives and a large number of retailers, will make it difficult, if not impossible, for stay-at-home spouses to establish a credit history or to rebuild their credit.

The law was meant to protect consumers. This is the law that put limits on fees and prohibited card companies from raising interest rates without notice or imposing different interest rates for different purchases.

The CARD Act also included provisions meant to protect consumers from predatory card issuers. For example, a major problem before the financial crisis and recession was the amount of credit available to college students. The act makes it harder for card companies to extend credit to students, just as it makes it harder for students to get credit that they can, potentially, abuse.

One of the criteria for issuing a card is the ability to pay. The CARD Act defines two standards: one for applicants under 21 and another for applicants 21 and older. For the younger set, the law requires proof of adequate income and the signature of an adult. For those of us 21 and older, the law requires that we show we can pay according to the credit contract.

The rule spun the standard a bit. The rule reads that those of us who are over 21 must show "independent ability to pay." That effectively rules out anyone who doesn't have an income of his or her own, and, for the most part, that means stay-at-home spouses.

We'll discuss the proposed response in a future post.

Source: Collections & Credit Risk, "Credit card demonstration rule may harm stay home moms," Kevin Wack, Dec. 15, 2011