Business Report: Credit card act - Hawaii News Now - KGMB and KHNL

Business Report: Credit card act

HONOLULU (HawaiiNewsNow) - The federal reserve board this week has issued its final rules under the credit card act. It requires credit card companies to consider your income before approving credit.

The Wall Street Journal, in an article called 'Look who's peeking at your paycheck,' reports the credit research company equifax will have data on income of many Americans, estimates in other cases. In some cases you may have to disclose your income with pay stubs to disprove a credit report that underestimates what you make.

The fine print on Bank of America and capital one credit card applications will contain consent agreements to have your employment verified. This is all a reaction to the subprime mortgage debacle, a key element of which was what amounted to a conspiracy by borrowers and lenders to write down whatever fictitious income level would get a loan approved.

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