Determining a borrower’s ability to pay will be a key component of Credit Card Act
When the Federal Reserve Board (FRB)–proposed rules implementing the Credit Card Act become effective on Feb. 22, 2010, credit card issuers will be required to consider a borrower’s ability to pay when making lending decisions. Issuers will be prohibited from extending credit or increasing a credit limit without considering the borrower’s ability to repay the debt.
As a credit industry leader, Experian is engaged in an active dialogue with the FRB and has issued comments on the proposed rule. However, in response to interest expressed by our clients in obtaining tools to help them assess and validate a borrower’s ability to pay, Experian now offers a suite of income-related products designed to support lenders’ ability to comply with the new regulations.
Income InsightSM is designed to estimate a borrower’s individual income utilizing verified income data and proprietary credit bureau attributes. Income ViewSM is a Web-based tax verification service that provides clients with IRS 4506-T processing and prompt access to applicants’ verified income via the Internal Revenue Service. Experian is confident that these products will be effective for a variety of our clients in the financial community, including retail and bank credit card issuers, as well as mortgage lenders and brokers.
Contact your Experian representative at 1 888 414 1120 for more information about these new products and to participate in client validations currently taking place for Income Insight.