Instant in-store financing subject to income verification on clarkhoward.com

Clark wants to remind everyone of the new credit card provisions going into effect Feb. 22, 2010. Here's a quick rundown of details that the consumer champ has discussed previously on the show:

• No more raising the interest rate on existing balances -- unless you fall two months behind on payments.
• If you have multiple interest rates on a single card, your payments will be applied to the highest interest rate first.
• Adults under age 21 must have parental consent to open a credit card. The sole exception to this rule is for legally emancipated minors.

Previously, Clark also told you that the retail industry had been fighting against a requirement to verify income before extending instant in-store financing. But the retail industry's efforts failed. So now the Super Bowl will be last the big selling time for instant in-store credit on big screen TVs, for example.

So as of Feb. 22, you will be asked about your income when you apply for in-store financing. Old-timers will recall this is the way credit was before the sea change in the mid 1990s when it started being handed out like candy. Going forward, it will be done on the honor system and you can be subject to fraud charges if you falsify your income.

What others are saying

Nothing new here?
All the stores we have had attempted to get instant financing in, still required we be currently employed at the time of the loan or purchase.
By PennyPincher @ 01/28/10 12:54:15 PMreport abuse
LOL PURE BS
So all one has to do now if they or their supposed co-signer have OK credit is lie about their income? Just dumb, the honor system is dead, and nobody ever gets in trouble for lying on a credit application. In-store credit should be just like a credit card, you apply and wait 2 weeks.
This is where my credit nightmare started, Sears. I had a Sears and a Sears Plus card for a few years, I bought a big screen and a stereo and paid it off and had 0 balance on each card. My ex, an ex-addict who had been sober for over a year, applied for the same cards when we lived together, and even though she had crap credit, because her address was the same as mine and she shared my last name, Sears joined our accounts together and they gave her my limits of 5,000 and 15,000 plus another 2k on each card, all without my permission to either her or the store. Eventually, she went back to the dark side and left me with 18k in sears charges. Not one call from Sears in the three months of wild spending, and Sears was even nice enough to send my statement separately with the zero balance I had even though our accounts were linked, so detecting this account change was impossible until it was too late.
AVOID STORE CREDIT AND RECOVERING ADDICTS lol
By Chris @ 01/25/10 12:47:37 PMreport abuse
"addendum" on terms
All credit cards have an "addendum" on
terms. The legality is in favor of the banks but the cardholder also has legal rights.

Yes, you must agree to the terms and the addendum before you get the card.

But did you know there is a loop hole
in the law for the cardholder. If you do not agree to the new terms and you have kept the old terms up to date then
you have a right to return to original old debt interest . In other words, the banks must ask your approval to agree to the new terms---if you disagree and the bank says no---then they must absorb the debt. Trust me-- call the banks and tell them you want the old terms or no terms--debt will become the banks... You will win. But most people will not contact the banks so the new addendum takes affect.

I have a bac at 6% mc at 6% and
visa at 7.9%. all wanted to change my rate to 29.9%. I used their original 0%
teaser rates about 2-3 years ago.Now of course the rate is higher but I agreed to the new rate on original contract.I told them I did not agree to the new terms so give me my same terms or the contract is over and you take over the debt.

They can cancel your card but here again you tell them No--do not cancel my card and tell them you expect them to continue with the old rate as agreed upon on the original contract.
By Tim @ 01/22/10 10:53:41 PMreport abuse

Nothing new here?

All the stores we have had attempted to get instant financing in, still required we be currently employed at the time of the loan or purchase.

By PennyPincher @ 01/28/10 12:54:15 PMreport abuse

LOL PURE BS

So all one has to do now if they or their supposed co-signer have OK credit is lie about their income? Just dumb, the honor system is dead, and nobody ever gets in trouble for lying on a credit application. In-store credit should be just like a credit card, you apply and wait 2 weeks.
This is where my credit nightmare started, Sears. I had a Sears and a Sears Plus card for a few years, I bought a big screen and a stereo and paid it off and had 0 balance on each card. My ex, an ex-addict who had been sober for over a year, applied for the same cards when we lived together, and even though she had crap credit, because her address was the same as mine and she shared my last name, Sears joined our accounts together and they gave her my limits of 5,000 and 15,000 plus another 2k on each card, all without my permission to either her or the store. Eventually, she went back to the dark side and left me with 18k in sears charges. Not one call from Sears in the three months of wild spending, and Sears was even nice enough to send my statement separately with the zero balance I had even though our accounts were linked, so detecting this account change was impossible until it was too late.
AVOID STORE CREDIT AND RECOVERING ADDICTS lol

By Chris @ 01/25/10 12:47:37 PMreport abuse

"addendum" on terms

All credit cards have an "addendum" on
terms. The legality is in favor of the banks but the cardholder also has legal rights.

Yes, you must agree to the terms and the addendum before you get the card.

But did you know there is a loop hole
in the law for the cardholder. If you do not agree to the new terms and you have kept the old terms up to date then
you have a right to return to original old debt interest . In other words, the banks must ask your approval to agree to the new terms---if you disagree and the bank says no---then they must absorb the debt. Trust me-- call the banks and tell them you want the old terms or no terms--debt will become the banks... You will win. But most people will not contact the banks so the new addendum takes affect.

I have a bac at 6% mc at 6% and
visa at 7.9%. all wanted to change my rate to 29.9%. I used their original 0%
teaser rates about 2-3 years ago.Now of course the rate is higher but I agreed to the new rate on original contract.I told them I did not agree to the new terms so give me my same terms or the contract is over and you take over the debt.

They can cancel your card but here again you tell them No--do not cancel my card and tell them you expect them to continue with the old rate as agreed upon on the original contract.

By Tim @ 01/22/10 10:53:41 PMreport abuse

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Jan 22, 2010 -- Instant in-store financing subject to income verification

What others are saying