WASHINGTON — The Senate Banking Committee approved sweeping legislation 12 to 11 on Tuesday to rein in credit card practices, with all Republicans and one Democrat — Sen. Tim Johnson — opposing the measure.
The bill by Chairman Chris Dodd would codify most provisions of a rule being implemented by the Federal Reserve Board and other regulators that bans several common card practices such as double cycle billing and universal default.
The Dodd bill would go further, however, by restricting card fees and adding extra protections for borrowers under 21.
In an unexpected twist, lawmakers added a separate measure to the bill that would more than triple, to $100 billion, the Federal Deposit Insurance Corp.'s borrowing authority with the Treasury Department. The bill would also allow the agency to temporarily borrow as much as $500 billion from Treasury if it had approval from the Fed and Treasury.
Dodd said during the vote that he hopes to keep working with colleagues over the congressional recess that begins next week to secure Republican support for the bill.
"I am going to make an effort... To see that we get broad support," Dodd said.