Credit Card Protections Pass the House

Score one for the consumer. After riding a sea of populist anger and complaints the house of representatives passed legislation that has come to be known as the credit card holders bill of rights by an overwhelming majority of 357-70.

The legislation will restrict certain credit card practices which include double cycle billing, retroactive interest rate increases and make it illegal to issue credit cards to anyone that is under the age of 18.

Other provisions of the new legislation include doing away with the fine print that is virtually indecipherable on credit card bills and making it much easier for people to read and understand their credit card statements.

The legislation passed with overwhelming bipartisan support that included lobbying efforts by President Barack Obama and members of his administration. The goal is to have it on Obama’s desk by Memorial Day weekend.

There will be however, a bit of a fight before it gets done. Lobbyists that represent the powerful credit card companies are doing whatever they can to water the bill down as much as possible and protect the very lucrative practices that the credit card issuers have come to be known for.

Members of the credit card industry hope to weaken the legislation and will be fighting to do so. House Speaker Nancy Pelosi stated that the overwhelming vote in the House of Representatives should give the bill strong momentum as it makes its way to the Senate.

In whatever form the legislation finally is passed, it will not take affect for another year yet. The only exception being that consumers will get 45 days notice prior to having their interest rates increased. That will take effect within 90 days of the bill’s passage.

Related Information:

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  3. The Credit Card Holder’s Bill Of Rights Is Finding Massive Support in the Senate And now it is the United States Senate’s turn to weigh in on the so-called credit card holders bill of rights. Senate Banking Committee Chairman Christopher Dodd of Connecticut is…
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