Arrow-right Camera

The Spokesman-Review Newspaper The Spokesman-Review

Saturday, June 6, 2020  Spokane, Washington  Est. May 19, 1883
Rain 55° Rain
News >  Nation/World

House sends president a tougher credit card bill

By Nancy Trejos Washington Post

WASHINGTON – The House on Wednesday gave final approval to a bill that will prohibit credit card companies from arbitrarily raising interest rates on existing balances and charging certain fees.

With a 361-64 vote, the House ensured that President Barack Obama will be able to sign the bill into law by Memorial Day.

The House had approved a more diluted credit card reform bill last month but chose to send a stronger Senate version to the president instead.

“These are important reforms to protect consumers and to bring some common-sense rationality into our financial system, and the president looks forward to signing it as quickly as possible,” said White House spokesman Robert Gibbs.

The legislation approved Wednesday will prohibit card companies from raising interest rates on existing balances unless the borrower is at least 60 days late paying the bill. If the cardholder pays on time for the following six months, the company would have to restore the original rate. On cards with more than one interest rate, issuers will have to apply payments first to the debts with the highest rates. Before increasing rates on future purchases, the card company would have to give cardholders 45 days’ notice.

Once Obama signs the bill as expected, it will take nine months to go into effect.

Subscribe to the Coronavirus newsletter

Get the day’s latest Coronavirus news delivered to your inbox by subscribing to our newsletter.


Asking the right questions of your CBD company

Bluegrass Hemp Oil in Spokane Valley offers a variety of products that can be very effective for helping with some health conditions. (Courtesy BHO)
Sponsored

If you are like most CBD (cannabidiol) curious consumers, you’ve heard CBD can help with many ailments.