House passes bill on credit card reforms

The bill that protects against interest rate icnreases on existing credit card balances has finally passed the House with the support of Rep. Michael McMahon.

The bi-partisan Expedited CARD Reform for Consumers Act would begin immediately after President Obama signs it into law, rather than the original Feb. 22, 2010 start date.

The bill protects against interest rate increases on existing balances, double-cycle billing and what McMahon called due-date gimmickry by credit card companies.

"Rather than curtailing their exploitative practices, many credit card companies implemented outrageous fees and interest rates in advance of the Credit CARD Act taking affect in February," said McMahon (D-Staten Island/Brooklyn).

"It's unfair that some banks are trying to squeeze strapped consumers for additional revenue before the strong federal law takes effect. Moving up the date by which the bill's protective provisions come into effect makes sense, especially with the holiday season approaching. American consumers should not be subject to these unconscionable practices one day more."