Legislation to rein in credit card practices and eliminate sudden rate hikes and late fees that have entangled millions of American consumers is getting closer to becoming law, bolstered by presidential pressure and the backdrop of economic calamity.
Measures before the House of Representatives and Senate are designed to enhance protections for credit card customers. The House bill, which was being put to a vote today, would prohibit so-called double-cycle billing and retroactive rate hikes and ban the issuance of credit cards to people under 18, but wouldn't take effect until a year after enactment.
Another requirement in the bill, that customers receive 45 days notice before their interest rates are increased, would go into effect in 90 days. Double-cycle billing eliminates the interest-free period of consumers who move from paying the full balance monthly to carrying a balance.
Similar regulations by the Federal Reserve don't take effect until July 2010. The House measure, dubbed the "Credit Card Holders' Bill of Rights," was expected to garner bipartisan support and swift passage. Yet some opposition was evident.
