Released: November 05, 2009

House cracks down further on credit cards

Source: Jessica Holzer & Sarah Lynch, Wall Street Journal (Paid Registration)

The U.S. House, in a slap at the credit-card industry, on Wednesday voted to freeze interest rates and fees for nine months and to immediately impose strict new credit-card rules currently set to take effect in February or later.

The 331-92 vote comes after lawmakers have been flooded with complaints from consumers furious that issuers raised interest rates, increased minimum payments and lowered credit limits. Dozens of Republicans joined Democrats to approve the measure.

Lawmakers have portrayed the industry’s actions as a last-ditch attempt to commit abuses that will soon be banned. But the new rules still give issuers wide latitude to raise interest rates and fees on new accounts and balances.

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