WASHINGTON (Reuters) – A bill to curb sharp practices in the credit card business was on track for approval by the U.S. Senate as early as Tuesday, with President Barack Obama expected to sign it into law before the end of the month.
Enactment of the legislation would mark the crest of a political backlash rising for years against the card industry amid sudden interest rate increases, hidden fees and aggressive marketing programs that have angered consumers, analysts said.
“This is a tough bill and will hurt the profitability of credit card lenders in our view. But the legislation could have been much worse” for card companies, said Jaret Seiberg, financial services policy analyst at Concept Capital.
If enacted, it would be the first major financial regulation reform completed by Obama as he tries to rewrite the rules of banking and the markets to better protect consumers and investors, and prevent another credit crisis.
The House of Representatives passed its bill on April 30 by a 357-70 vote, and Obama on Thursday urged Congress to complete a final bill so he can sign it into law by the end of May.