UPDATE 2-US House backs speed-up for new credit card rules
* Limits would take effect upon enactment of bill
* Bill must go next to Senate for review and vote
* Partial escape hatch for voluntary rate increase halt
* Small issuers, gift card providers exempted (Adds Lee, Maloney, Hensarling, Frank comments, byline)
WASHINGTON, Nov 4 (Reuters) - Lashing out at large credit card companies, the U.S. House of Representatives on Wednesday approved a bill to advance the effective date for strict, new limits on card fees and interest rates.
The Democratic bill passed in a 331-92 vote that won substantial Republican support, with lawmakers citing a flood of credit card complaints from constituents.
The bill, still subject to debate and a vote in the Senate, would make the new restrictions on the card industry effective immediately upon its enactment.
It applies to the largest issuers that control over 80 percent of the credit card market.
The bill's prospects in the Senate were uncertain. For now, the effective date is not until next year.
Senator Mark Udall has introduced a companion bill. And Senate Banking Committee Chairman Christopher Dodd, a frequent critic of credit card companies, has introduced a separate measure calling for a freeze on retroactive card rate increases.
Earlier this year, Congress voted to sharply restrict card issuers' ability to raise rates on cardholders' existing balances, charge certain fees and levy unreasonable penalties. President Barack Obama signed the limits into law in May.
(For details on the new credit card rules, please double-click on [ID:nN20505135])
Some of the changes took effect two months ago. Others are not scheduled to become effective until February and August 2010.
In the interim, credit card companies have jacked up fees and rates to try to maximize revenues, said lawmakers and consumer advocates.
"The banks which pleaded for just a little extra time ... used that time to pad their profits," said Democratic Representative Barbara Lee during debate on the House floor. Continued...
