Credit Card Bill Could See Vote Before Elections

Supporters of a credit card rules change bill say that the full House of Representatives could vote on the legislation in advance of the General Election in November.

As the economy worsens and household credit matters are placed on a front stage, some proponents of a “Credit Cardholders’ Bill of Rights” say that the House could take up the measure that was passed by a committee over the summer (“Consumer-Friendly Credit Card Bill Passes House Committee,” Aug. 1).

The bill would require credit card issuers to give account holders 45 days notice of any increases in interest rates. Monthly bills would have to be mailed at least 25 days before the due date, up from the current minimum of 14 days, and fees could not be charged on the remaining interest-only balance of a customer who has paid their bill on time.

"It's a sign that the lock that the credit card industry has had on Congress is loosening," Travis Plunkett, legislative director for Consumer Federation of America, told the Associated Press. "I think there's a very good chance it will pass the House this month."

But others say that the bill will have to wait until a new Congress is sworn in next January.

The House bill, sponsored by Rep. Carolyn Maloney (D-N.Y), has a companion bill in the Senate sponsored by Sens. Carl Levin (D-Mich.) and Banking Committee Chairman Christopher Dodd (D-Conn.). But the Senate bill faces a tougher challenge as the Democratic majority in that house is slimmer.

The banking industry has vehemently opposed the legislation, saying that if consumers are unhappy with their credit card terms, they can always go with another issuer.

But a Congressional investigation showed that the five largest card providers -- Discover, Bank of America, Citigroup, JPMorgan Chase and Capital One -- issue 80 percent of all credit cards in the U.S.