U.S. House wants to speed up new credit card rules

The U.S. House voted today to freeze credit card interest rates and fees for nine months. The bill, approved 331-92, would accelerate the February enactment date of legislation already passed by Congress that restricts when and how banks can charge credit card customers.

The Wall Street Journal explains, "The industry says the bad economy and the new credit card law have forced lenders to raise rates and rein in credit. It has repeatedly warned Congress that the new rules would result in higher interest rates for new accounts and new balances. But consumer advocates and Democrats claim the industry has gone too far."

The bill would become effective when President Barack Obama signs it, but prospects of Senate passage are dim, says CBS news.

Since August, card issuers must alert consumers 45 days prior to raising interest rates on new or existing balances.

The additional rules slated to take effect in February include a ban on raising rates on existing balances unless the cardholder is 60 days late making a payment. If the cardholder pays on time for the next six months, the old rate must be restored.

Related posts:

Credit card bill: the end of fees or the beginning?

Congress addresses drastic credit card interest hikes