WASHINGTON - — WASHINGTON - -Heeding a call from President Barack Obama and riding a wave of populist anger, the Senate overwhelmingly passed a landmark bill Tuesday that aims to transform the relationship between consumers and their credit card companies.
The bill, which was approved in a 90-5 vote, imposes an unprecedented set of restrictions on the credit card industry and would, among other things, curtail retroactive interest-rate increases, require advance notice of rate increases, prevent excessive "over limit" fees and prohibit lenders from raising rates when a cardholder is late on a separate debt.
It would also make it more difficult for companies to solicit college-age students for credit cards, prevent companies from charging a fee for paying a bill and prohibit interest charges for debts paid on time.
The House passed similar legislation last month. The two bills will now be reconciled, with the goal of sending a final version to Obama for his expected signature by the end of the week.
For much of the debate over the bill, banks and credit card lenders - which historically have wielded enormous influence in Washington - found themselves the targets of blistering attacks from senators who accused them of engaging in exploitative and misleading tactics.
"It was abusive," Connecticut Democratic Sen. Christopher J. Dodd, a co-sponsor of the bill, said after the vote. "It needed to stop. It needed to change." "The credit card companies have crossed line after line," added Sen. Charles Schumer, a New York Democrat.
The measure was notable for being one of the few bipartisan success stories in an otherwise contentious year on Capitol Hill. "Republicans and Democrats have heard the same stories from consumers," said Sen. Lindsey Graham, a South Carolina Republican who voted for the bill.
Indeed, last week, during debate on the bill, Missouri Democratic Sen. Claire McCaskill said her office has received "thousands of e-mails" during the last six months complaining about industry practices.
"I'm not sure there's any piece of legislation that is more important to the people at home than this credit card bill," McCaskill said on the Senate floor late last week during final debate on the bill. "We need to heel these companies that are taking advantage of an unlevel playing field." Last week, Obama had carried a similar message to a "town hall" style event outside of Albuquerque, N.M.
