In a response to the economic angst that is presently common within the population and concerns about the next sector of economic breakdown projected in the credit card market, the US House of Representative has passed a new bill designed to protect credit card consumers and card holders. In a bipartisan effort spearheaded by the new President Barack Obama, the representatives voted 357 to 70 to approve a bill restricting certain credit car company practices such as sudden increases in a consumer’s interest rates or late fees. The measure is designed to target practices better known as a double-cycle billing and a retroactive interest rate hike. The measure also prevents credit card companies from issuing credit cards or credit accounts to anyone under the age of 18 in order to protect those underage consumers.

The passed bill will now go to the Senate and then the President for his signature and approval. If all goes according to plan, the law would go into effect next year. There is one part of the measure that will go into effect in 90 days which requires that credit card companies give at least a notice of 45 days before they can increase a consumer’s credit card rates.

Currently, there is a similar measure being considered by the Senate, and judging by the spearheading efforts of Barack Obama, this law will be completed very soon. This is a big contrast in movement, where many have already tried to pass a similar measure unsuccessfully for many years to reform the credit card industry.

The main objects to the new proposed measures and law are that the measures would give credit card companies increased opportunities to raise interest rates by defining the regulations and process by which to do that. Also, by limiting the target consumers of the credit card companies, others are concerned that this translates to restricting the competitive marketplace by eliminating some forms of credit card competition and consumer choices. Other concerns exist over the fact that when one places more restrictions on credit card companies, it makes them less likely and willing to extend new credit accounts to the people who might need them.

The main supporters of the bill used the present economic environment and concerns to pass the bill quickly. Supporters stress that credit card companies have used these deceptive measures for many many years to take advantage of the American consumer. Also, the US population has grown to be more and more dependent upon credit card debt, as in the past decade credit card debt has grown by about 25%.

You should know all the new rules and regulations before applying for a credit card. You should also always know what is in your credit history. Another good idea is to get a credit monitoring service so that you are notified immediately of any changes in your credit history so that you can stop errors or signs of fraud.