House passes credit card bill designed to protect consumers
WASHINGTON -- The House of Representatives overwhelmingly approved credit card legislation on Thursday aimed at protecting consumers from hidden fees and sudden interest rate hikes.
Riding a crest of populist anger, the House has cleared a bill to rein in credit card practices and eliminate sudden increases in interest rates and late fees that have entangled millions of consumers.
The legislation passed Thursday by a bipartisan vote of 357-70 and follows lobbying by President Barack Obama and members of his administration.
The measure would prohibit so-called double-cycle billing and retroactive rate hikes and would prevent companies from giving credit cards to anyone under 18.
If they become law, the new measures won't take effect for a year, except for a requirement that customers get 45 days' notice before their interest rates are increased. That would take effect in 90 days.
Banks opposed to legislation have warned it could reduce the amount of credit available and make it more costly to use a credit card.
Obama, who backs congressional efforts to overhaul the industry, is expected to sign a bill into law by late May once the Senate considers its own version next week.
Citigroup, Bank of America, JPMorgan Chase and Capital One Financial had almost 77% of the credit card market at the end of 2007.
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