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| Version 0 | Version 1 |
|---|---|
| US Senate passes credit card bill | US Senate passes credit card bill |
| (about 5 hours later) | |
| Lawmakers in the US Senate have voted overwhelmingly in favour of a bill that puts new restrictions on the credit card industry. | |
| The bill would curb sudden interest rate increases and hidden fees. | The bill would curb sudden interest rate increases and hidden fees. |
| The industry has warned that the measure could backfire, leading banks to issue fewer credit cards thus making it harder to get credit. | The industry has warned that the measure could backfire, leading banks to issue fewer credit cards thus making it harder to get credit. |
| The bill would mark the first major financial reform made by the Obama administration. | The bill would mark the first major financial reform made by the Obama administration. |
| Analysts said it would hurt the profits of major credit card issuers such as Citigroup and Bank of America. | Analysts said it would hurt the profits of major credit card issuers such as Citigroup and Bank of America. |
| The bill must again go before the House of Representatives and then be approved by President Barack Obama, who is expected to sign it into law by the end of the month. | The bill must again go before the House of Representatives and then be approved by President Barack Obama, who is expected to sign it into law by the end of the month. |
| Edward Yingling, president of the American Bankers Association, said the credit card bill, if signed into law, would undermine the availability of credit. | Edward Yingling, president of the American Bankers Association, said the credit card bill, if signed into law, would undermine the availability of credit. |
| 'Reasonable rules' | 'Reasonable rules' |
| The bill would prevent companies from raising interest rates on existing balances unless a card holder was 60 days behind, and then it would require the rate to be restored to its previous level if payments were on time for six months. | The bill would prevent companies from raising interest rates on existing balances unless a card holder was 60 days behind, and then it would require the rate to be restored to its previous level if payments were on time for six months. |
| Card holders would have to be told of rate increases 45 days in advance and it would also make it harder for people aged under 21 to be issued with credit cards. | Card holders would have to be told of rate increases 45 days in advance and it would also make it harder for people aged under 21 to be issued with credit cards. |
| "This bill bans unfair rate increases, makes companies play by reasonable rules and magnifies the fine print so consumers aren't blindsided by their monthly bills," Democratic Senator Richard Durbin said. | "This bill bans unfair rate increases, makes companies play by reasonable rules and magnifies the fine print so consumers aren't blindsided by their monthly bills," Democratic Senator Richard Durbin said. |
| However, there are fears that if penalties on riskier borrowers are limited, credit card issuers could introduce annual fees and and curtail reward programmes to make up for lost revenue. | However, there are fears that if penalties on riskier borrowers are limited, credit card issuers could introduce annual fees and and curtail reward programmes to make up for lost revenue. |