House Approves Credit Cardholders' Bill of Rights

No more interest rate hikes

The House of Representatives today passed a bill aimed at helping consumers who have credit cards. The bill does not apply to other types of credit, such as installment loans.

The Credit Cardholders’ Bill of Rights protects against hidden fees and interest rate hikes. The legislation passed by a wide margin, 357-70.

More benefits of the bill

The Credit Cardholders’ Bill of Rights also places restrictions the amount of late fees credit card companies and banks can charge. The measure also prohibits  retroactive rate hikes and giving credit cards to applicants  younger than 18.

Unfortunately, if these measures are approved they won’t take effect until next year. The bill now goes to the Senate. ABC News says its “prospects appear promising.”

No more double-cycle billing

The Credit Cardholders’ Bill of Rights also bans double-cycle billing. This practice is also known as “two cycle average daily balance.” Companies that use this method charge interest on the current balance of the card as well as the average daily balance from the previous billing cycle.

This practice is not used by all credit card companies. And, if the bill passes, it won’t be used by any credit card companies. ... click here to read the rest of the article titled "House Approves Credit Cardholders' Bill of Rights"