What part of Reg B do you think prohibits this practice??
I'll run with this one. I think this is a great topic for discussion.
§202.7(d) prohibits a party from becoming liable unless they apply. If I sign an unlimited guaranty with my wife for our business operations, it could be used illegally by the bank in future credit obligations.
Most unlimited guarantees say they apply to EVERYTHING in the future (they automatically attach). That's why they are call "unlimited". Imagine my wife wants to get a credit in her own name to purchase a car. Technically she can't if the unlimited guarantee exists unless it is somehow "cut off". IOW, when she applies for credit, the guarantee that I signed in the past automatically attaches itself to her new credit obligation.
I'd say that's a problem with Reg B. What do you say?