A bill to rein in a slew of common card practices passed the House by a vote of 312 to 112 on Tuesday.
The bill, H.R. 5244, is sponsored by Rep. Carolyn Maloney, D-N.Y. It would prohibit raising rates on existing debt except when a consumer pays a bill 30 days or more late, a promotional rate expires, or an index tied to the rate increases. The bill also would ban double-cycle billing, restrict fees, and bar minors from obtaining cards.
The Senate is not expected to vote on the bill this year.
Edward L. Yingling, the president and chief executive officer of the American Bankers Association, said in a press release that it was "very disappointed" by the vote. The bill, "while well-intentioned, will increase the cost of credit … and may further roil the securities markets — all at a time when our economy can least afford it."
