We are picking up the discussion from our Dec. 21 post about a new rule adopted by the Federal Reserve Board. As we explained, rules (also called regulations) put the meat on the bones of laws passed by Congress. The law we've been talking about is the 2009 Credit CARD Act, and the rule could have a negative effect on some borrowers who are trying to rebuild their credit or even just to establish a credit history.

The rule requires credit card applicants age 21 or older to show the "independent ability to pay." Critics -- including Atlanta's own Home Depot -- say the rule significantly narrows the language of the law. The CARD Act calls for people 21 or older to show that they can pay according to the terms of the credit agreement.

The borrowers most affected by the rule are stay-at-home spouses. These are people who do not have independent incomes but who do have access to household income. Stay-at-home spouses aren't just the Candy Spelling socialites, either. They are spouses who can't afford to work because, even with the extra income, they can't afford daycare.

Some of the most vocal opponents have been retailers. Retailers object to the rule because stay-at-home spouses, particularly moms, comprise the majority of their store cardholders.

But retailers are not alone. Lawmakers object on at least two grounds: First, because the rule does not follow the spirit of the law; and, second, because the rule will likely have a disparate impact on women.

The rule went into effect on Oct. 1, 2011. A few members of the House have written to the Fed, but they are not asking to toss the rule altogether. They ask, instead, that the Consumer Financial Protection Bureau conduct a study to determine if the rule does, in fact, have a disparate impact on women or any other group of consumers. The Fed agrees that a study would be useful.

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