Obama Signs Credit Card Bill Into Law
Prez 'has ushered in a new era' of consumer protections: Dodd
By Neal Colgrass,  Newser Staff
Posted May 22, 2009 7:12 PM CDT
Rep. Carolyn Maloney, D-N.Y. and Senate Banking Committee Chairman Sen. Christopher Dodd, D-Conn., hold up pens President Barack Obama used to sign the new credit card law.   (AP Photo/Charles Dharapak)
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(Newser) – President Obama signed a landmark bill into law today limiting the fees and interest rates credit card companies can impose, the Washington Post reports. "Just as we demand credit card users act responsibly, we demand that credit card companies act responsibly too," said Obama at the Rose Garden signing, joined by consumer advocates and lawmakers from both sides of the aisle.

When it takes effect in 9 months, the law will prevent companies from raising interest rates unless a cardholder is late 60 days. Even then, companies will return to the original rate after 6 months of prompt payments. And higher-than-minimum payments will automatically go to debts with the greater interest rate. Credit card executives say the law will force them to impose higher rates and annual fees on all users.