House Votes To Accelerate Credit Card Rules

ANNE FLAHERTY

WASHINGTON (AP) — The House voted on Wednesday to impose immediately tough new rules for credit card companies after voters complained of increased interest rates and steep new fees.

The bill, approved 331-92, would accelerate the enactment date of legislation passed this spring that limits when and how banks can charge borrowers.

The proposal's chances in the Senate were dim, where several lawmakers worried that a short deadline would hurt the industry and limit the availability of credit.

Nevertheless, investors seemed to take notice of the House rhetoric. Bank stocks tumbled in the last hour of trading on Wednesday immediately after the House vote, causing a late-day slump in the market.

Democrats said the bill was a warning shot to lenders to stop price gouging.

"This is both real and a lesson to them," said Rep. Barney Frank, D-Mass., the chairman of the House Financial Services Committee.

Last spring, Congress passed legislation that would protect debt-ridden consumers from many of the surprise changes that have become common in the industry. President Barack Obama signed that bill into law in May and most of the new rules will take effect on Feb. 22, 2010.