As the deadline for the CARD Act fast approaches, credit card issuers are attempting to determine exactly what changes they will need to make to their monthly statements and lending practices in order to comply with the new regulations put forth by the legislation. In order to assist issuers, information services company Equifax has developed a new tool to assess consumer’s ability to pay their credit card bills.


New Compliance Rules Released

The new rules for compliance were released to credit card issuers by the Federal Reserve Board on January 12 of this year, and are scheduled to go into effect on February 22. One of the stipulations of these new rules were that issuers must clearly include in their customers monthly statements an honest assessment of how long it will take borrowers to repay their debts. Equifax’s new tool will help issuers to determine this information, using actual employer issued income data as well as IRS tax filings. The estimation models used by Equifax are Fair Credit Reporting Act and CARD Act compliant.

Used By Top Credit Card Issuers

Already, three of the top four credit card issuers have turned to Equifax to ensure compliance in determining consumer capacity pay. The comprehensive data from the company allows issuers to access real-time information gathered through prescreening, invitation to apply and line management review.

The ability-to-pay suite also offers issuers a complete view of consumers assets and obligations and solutions to determine the ratios of debt-to-assets or debt-to-income, so they can see an accurate assessment of how difficult it would be for consumer to repay their obligations.

Equifax is one of the leading providers of credit reports. For more information on the new CARD Act regulations see our article here.

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Simon Zhen

Simon is a research analyst for MyBankTracker. He is an expert on consumer banking products, bank innovations and financial technology.
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  • Random

    Very helpful…. I was about to make a bad decision

  • Disgusted!!!

    I too just experienced this scandalous bank!!!! I can not believe this just happened to me. Turns out, because I wasn’t using my money, Wells Fargo depleted my money in my account with fines that I worked hard for and closed my account because I had no activity in a couple of months! This bank is everything Karma wrote above! How can an institution take someone’s hard earned money like that! They basically are frauds and steal innocent people’s money!!!! They should be very ashamed of themselves!!!! I can’t understand how this is legal!!!!

    Unless you want to give your money to Wells Fargo, go and bank somewhere else!!!!!

  • Wut?

    Guys…. This isn’t 2007. You can’t have a checking account with $82 in it just sitting there for months and expect the bank to just hold on to it for free. You believe your $82 is gaining big returns on the loans it’s funding? No. How about you don’t wait for months before you take a glimpse at your bank account. It’s 2013, online banking is a few clicks away to check up on your money and see what it’s doing.

    Every time there is a change to account monthly service fees the bank will typically refund the first fee your account gets after the change. But to show up 5 months later screaming about how $25 of your $82 was wrongfully stolen because you ‘weren’t aware’ is just ignorant.

    Oh, you’re account is a little different now once Wachovia was bought out by Wells Fargo? Maybe the color changing from blue to red should’ve been the first hint that a change took place and stopping by a branch, making a phone call or doing a google search was warranted just to check up on things. Oh Wells Fargo should’ve informed you? Interesting, every thirty days they mail you information about your account and have a handy box at the bottom the talks about any changes in plain terms with a phone number or an invitation to your local branch for any further questions. Oh you never got the mail cause you never updated your address when you moved 2 years ago? Probably should go online and make a rant.

    Seriously, wise up people, you care this much about your money months after a few fees are taken out, you’d think you would pay any attention at all 1 day a month to look at your bank statement. Or instead of posting here you could be checking your online banking. You’re probably getting hit with another fee right now anyway.

  • TOM

    first union,..i mean wachovia,..oops, i misspelled that, its walkoverya. became wellsfargo, and snagged up emergency cash i had been counting on having incase of such an occasion. there wasnt much in there, but thats beside the point if your recently unemployed, just out of cash, and need gas or groceries.( just before christmas might i add!) needing to keep the account open for a final transaction, i tried once more and was given a refund for the unknown service fees (YEA!) which was taken back out for another fee before i could drive to the bank and close the account not ten minutes later!