WASHINGTON, May 1 (UPI) -- A bill aimed at protecting U.S. holders of credit cards from arbitrary interest rate hikes passed the House of Representatives 357-70 Thursday.
The measure would require card issuers to give consumers 45 days notice of interest rate increases and bans double-cycle billing, in which cardholders are charged interest on balances paid the previous month, Gannett News Service reported. Card issuers would have to send bills at least 25 days before payment is due.
Amendments to the Credit Cardholders' Bill of Rights added before the vote included additional protection for college students and members of the military on overseas service. Credit lines for students under age 21 would be limited to no more than 20 percent of their annual income unless an adult cosigns.
Another amendment requires payments to be applied to balances with the highest interest rate.
President Barack Obama met last week with industry executives to discuss consumer protections.
