New credit card bill to become law before month end

A bill restricting credit card practices is on track to being approved by the U.S. senate; President Barack Obama is expected to sign it into law before the end of the month.

The enactment of the legislation will regulate credit card practices by controlling sudden hikes in interest rates and late fee charges among others.

The House of Representatives passed its bill on April 30 by a 357-70 vote.

The bill will prohibit so-called double-cycle billing, retroactive rate hikes and bar companies from issuing anyone under 18 with a credit card.

The bill does not include a cap on interest rates, as some lawmakers wanted. Nor does it bar lenders from issuing cards to college students, although that is limited under the bill.

If the new measures become law, they won't take effect for a year, except for a requirement that customers get 45 days' notice before their interest rates are increased. That would take effect in 90 days.

In the past consumer advocates and some Democrats have unsuccessfully sought to bring new rules to the industry.