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May 19th, 2009
12:06 PM ET

Senate OKs credit card curbs

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Jennifer Liberto
CNNMoney.com Senior Writer

The Senate on Tuesday voted 90-5 to approve a bill that will make it tougher for credit card issuers to raise fees and interest rates starting early next year.

The bill includes an unrelated measure that would allow people to carry concealed weapons into national parks.

The bill now goes to the House, which is expected to take it up on Wednesday and pass it before the weekend. The bill would get to President Obama's desk before Memorial Day, as he called for.

"To have the industry reaching and be as abusive to consumers, it needed to stop and it needed to change," said Sen. Chris Dodd, D-Conn., a bill sponsor.

The legislation is moderately tougher on card issuers than are new Federal Reserve rules that take effect in July 2010.

The Senate's bill would take effect in nine months and make it harder for people under age 21 to get credit cards. It would also ban rate hikes unless a consumer is more than 60 days late – and then restore the previous rate after six months if minimum payments are made.

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soundoff (One Response)
  1. Cindy

    It's about time that the Senate got something right! Now lets hope the House doesn't screw it up!

    But what's up with the slipped in add on of being able to carry a concealed weapon into a national park? That seems stupid to me since UMM..HELLO aren't the animals there protected? And also why do you need a gun there..planning on killing someone or what!? Sometimes they pass the stupidest stuff!

    Cindy..Ga.

    May 19, 2009 at 4:17 pm |