"Reg Z," credit cards, and the impact on you

If you've noticed an increase in requests for verifications of employment and income, there are several reasons.

One of the latest: The U.S. Federal Reserve had amended parts of Regulation Z that affect credit card issuers. "Reg Z," as it's known in banking circles, now includes a requirement to consider the card holder's ability to make minimum monthly payments. According to Reg Z, issuers must establish "...procedures to consider a consumer's income or assets and current obligations." Reg Z applies not just to new cards, but also to changes in the credit limits for existing cards.

If you're already a client of The Work Number, you'll feel little or no impact as most card issuers know The Work Number well and check our service before calling an employer.

You may get an occasional call from someone at a card issuer that doesn't know your organization is part of The Work Number. Just send them to www.theworknumber.com.

It's not just Reg Z causing an increase in employee verification requests. The recent credit bust brought about a number of new requirements that result in more requests for verifications of employment and income. For example, many mortgage lenders must now perform one last employment verification just before they close a loan for one of your employees. That's in addition to the verification of income they probably obtained during the underwriting process.

It adds up to a significant administrative burden on employers – except for employers who have already joined The Work Number.

If you'd like more information about Reg Z and how it affects you, please send us an email at moreinfo@talx.com with "Reg Z" in the subject line.

If you're not on The Work Number and would like to unload this burden, please send us an email at moreinfo@talx.com with "Information on The Work Number" in the subject line.

Newsletter: June 2010, Volume II