WASHINGTON – The House yesterday voted to ban a variety of credit card practices, most of them targeted at low-income cardholders, but the credit union-opposed bill is sure to die from inaction in the Senate.
The bill would ban so-called double cycle billing, universal default, payment allocations and retroactive rate increases, among other practices.
The credit union lobby has major reservations with the bill, especially with a handful of key provisions, such as a ban on retroactive rate increases and an expansion of the billing cycle to allow cardholders extra time to pay.
The House passed the bill, 312 to 112, but it was not expected to advance in the Senate as Congress tackles the Bush administration's $700 billion Wall Street bailout plan before adjourning as soon as Friday.
Credit unions and other credit card issuers still could face new restrictions from the Federal Reserve, which is expected to finalize similar rules by the end of this year.
