WASHINGTON – The House voted again yesterday to pass a credit card reform bill that would bar issuers from retroactive rate hikes, double-billing and so-called universal default.
The bill, which passed the House in the last Congress, now goes to the Senate for a vote.
CUNA and NAFCU said they were generally supportive of the bill, which would have little effect on credit union practices, especially after its sponsors agreed to extend the effective date of its provisions to one year after final passage or July 2010, whichever comes first.
The bill is similar to new rules passed by the Federal Reserve in December except for provisions that would require card issuers to maintain low introductory rates for at least six months, and to warn card holders if they are about to exceed their credit limits, allowing them to avoid a penalty fee.
It also seeks to make disclosures easier to read and bans issuers from charging card holders who pay their bills by phone or online.
A similar bill is expected to be considered by the Senate next week.
