The House overwhelmingly approved legislation Wednesday imposing new restrictions on credit-card companies, sending the measure to President Barack Obama to sign in the coming days.

The 364-61 approval, following the Senate’s 90-5 vote Tuesday, will ban several of the industry’s most profitable practices and require clearer disclosure to cardholders about the interest they are paying.

Mr. Obama has pledged to sign the measure, which would take effect in late February 2010. One of the toughest provisions: Cardholders won’t see interest-rate increases on existing card balances unless they are 60 days late on payments. And if the customer pays on time for six months after that, the prior rate must be reinstated.

The new rules also would ban some fees, provide more notice for customers to pay bills and require clearer disclosures. For instance, credit-card statements will have to tell customers how long they would need to wipe out their balance if only paying the minimum each month, and how much interest they would incur along the way.

The legislation will force broad changes in the credit-card business, many of which were under way after the Federal Reserve approved similar — though less stringent — regulations in December. Industry officials say the most stringent elements of the legislation will constrain their ability to adjust prices for the riskiest consumers. Card companies have said they are considering shorter introductory rates, higher interest rates and more annual fees for some consumers as a result of the new restrictions.

There was another provision/amendment tacked onto the credit card bill for gun rights and the ability to carry guns inside national parks.  105 Dems in the house and several in the senate voted for this amendment.  YAY NRA!  Tom Coburn put this into the legislation – taking a page right out of the liberal playbook to tack it onto another bill that would most likely get passed.

What the critics have to say about possible issues from the credit card bill:

– Credit will tighten

– This will cause unemployment in the credit industry

– This is more unprecedented government control

– People who pay late are rewarded while those who are responsible have to pick up the bill and get punished

– May actually be more detrimental to the economy in the long-run than people realize

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