House backs speed-up for new credit card rules

WASHINGTON (Reuters) - In a rebuke to credit card companies, the U.S. House of Representatives on Wednesday voted 331-92 to approve a bill to advance the effective date for new limits on credit card fees and interest rates.

The bill also calls for a nine-month moratorium on increases in credit card annual percentage rates, as well as fees, finance charges and any changes in the terms for repayment of outstanding balances.

The measure must go to the Senate for debate and a vote there before it could take effect.

The new rules governing the card industry are now scheduled to become effective in late February, but under the House bill the change would be effective immediately upon enactment of the bill into law.

Major card issuers include Bank of America (BAC.N), Citigroup (C.N), Capital One Financial (COF.N), JPMorgan Chase & Co (JPM.N) and American Express (AXP.N).

Earlier this year, Congress voted to slap new limits on the industry, and President Barack Obama signed them into law in May.

The law will sharply restrict card issuers' ability to raise interest rates on cardholders' existing balances, charge certain fees, and levy unreasonable penalties on cardholders.

But in the interim period that issuers have to comply, they have jacked up fees and rates to try to maximize revenues, said Democratic lawmakers and consumer advocates.

(Reporting by Kevin Drawbaugh; Editing by Leslie Adler)