US House Passes Credit Cardholders Bill

The US House of Representatives has passed a bill that would protect consumers from some credit card practices. The House’s Credit Cardholders’ Bill of Rights would prevent punitive interest rate increases unless an account is more than 30 days late. It would also require credit card companies to give 45 days notice for interest rate increases. And it would limit late and over-limit fees and allow consumers to set “hard” limits so purchases would not go through if they push cards over the limit.

A similar bill is pending in the US Senate. There will probably be changes before a compromise bill goes to President Obama, who says he would sign such legislation if it passes.

Credit provider lobbyists are expected to try to dilute the bill.