Riding a wave of public anger the House cleared legislation Wednesday that would curb a number of credit card practices that the White House and consumer advocates have denounced as abusive.
President Obama had urged lawmakers to send him the bill (HR 627) before they started their Memorial Day recess at the end of this week. He is expected to sign it swiftly.
The Senate passed an amended version of the measure Tuesday by 90-5. The House accepted the Senate amendments Wednesday afternoon thus sending the bill to the White House.
The bill would generally bar interest rate increases on existing balances unless a card-holder has failed to make even a minimum payment for 60 days. It would outlaw double-cycle billing require 45 days notice before any interest rate increase and prohibit interest rate increases anytime in the first year that an account is activated.
The legislation also would require card companies to apply a consumers monthly payment to the debt with the highest interest rate or to all debts equally.
Before clearing the bill the House voted 279-147 to concur in a Senate amendment that would allow people to carry firearms in national parks and wildlife refuges if allowed by state law. The rest of the Senate-amended bill was approved 361-64.
Many Democrats opposed that provision but not enough to block its adoption.
Rep. Carolyn B. Maloney D-N.Y. chief sponsor of the credit card bill said she opposed the gun amendment but did not want to see it hold up the underlying legislation which she has tried to pass for several years. This is one credit card bill that the American people cannot afford to have become past due" she said.
Rep. Jeb Hensarling R-Texas speaking for GOP critics of the measure warned that it would have unintended consequences. He cited reports that credit card companies to make up for the revenues they expect to lose as a result of the crackdown would target customers who pay off their balances in full every month.
Card companies he said are likely to revive annual fees limit cash-back and other rewards for use of their cards and even start assessing interest charges from the moment of purchase instead of giving a grace period.
By limiting the ability of card companies to charge fees and high interest rates to riskier customers Congress is punishing responsible consumers he said.
This is yet another piece of bailout legislation" for those who failed to manage their finances well Hensarling charged.
But Barney Frank D-Mass. chairman of the Financial Services Committee scoffed at the suggestion that card companies would suddenly go after customers who currently escape their fees and charges. He said that assumed the companies were leaving money on the table" that they could be collecting now.
Riding a wave of public anger the House cleared legislation Wednesday that would curb a number of credit card practices that the White House and consumer advocates have denounced as abusive.
President Obama had urged lawmakers to send him the bill (HR 627) before they started their Memorial Day recess at the end of this week. He is expected to sign it swiftly.
The Senate passed an amended version of the measure Tuesday by 90-5. The House accepted the Senate amendments Wednesday afternoon thus sending the bill to the White House.
The bill would generally bar interest rate increases on existing balances unless a card-holder has failed to make even a minimum payment for 60 days. It would outlaw double-cycle billing require 45 days notice before any interest rate increase and prohibit interest rate increases anytime in the first year that an account is activated.
The legislation also would require card companies to apply a consumers monthly payment to the debt with the highest interest rate or to all debts equally.
Before clearing the bill the House voted 279-147 to concur in a Senate amendment that would allow people to carry firearms in national parks and wildlife refuges if allowed by state law. The rest of the Senate-amended bill was approved 361-64.
Many Democrats opposed that provision but not enough to block its adoption.
Rep. Carolyn B. Maloney D-N.Y. chief sponsor of the credit card bill said she opposed the gun amendment but did not want to see it hold up the underlying legislation which she has tried to pass for several years. This is one credit card bill that the American people cannot afford to have become past due" she said.
Rep. Jeb Hensarling R-Texas speaking for GOP critics of the measure warned that it would have unintended consequences. He cited reports that credit card companies to make up for the revenues they expect to lose as a result of the crackdown would target customers who pay off their balances in full every month.
Card companies he said are likely to revive annual fees limit cash-back and other rewards for use of their cards and even start assessing interest charges from the moment of purchase instead of giving a grace period.
By limiting the ability of card companies to charge fees and high interest rates to riskier customers Congress is punishing responsible consumers he said.
This is yet another piece of bailout legislation" for those who failed to manage their finances well Hensarling charged.
But Barney Frank D-Mass. chairman of the Financial Services Committee scoffed at the suggestion that card companies would suddenly go after customers who currently escape their fees and charges. He said that assumed the companies were leaving money on the table" that they could be collecting now.
