Congress Gives Final Approval to Credit-Card Bill

Washington — Rushing to meet a Memorial Day deadline set by President Obama, the U.S. House of Representatives gave final approval today to credit-card legislation that would create new protections for borrowers, but could make it harder for students to obtain charge cards.

The bill, which the Senate passed on Tuesday, now heads to President Obama, who has said he will sign it even though it contains a controversial provision that would allow people to carry guns in some national parks.

Once enacted, the bill would shield students and other consumers from sudden spikes in interest rates and fees, and would place restrictions on the issuing of credit cards to students under the age of 21. It also would cap the amount students under the age of 21 could borrow at $500 or 20 percent of their annual income, whichever was greater.

Student groups say the bill would protect students from misleading marketing and unfair terms and conditions. But critics say it could constrict credit at a time when a growing number of students rely on credit cards to pay tuition and other college expenses.

According to a recent survey by Sallie Mae, the nation’s largest student lender, 84 percent of undergraduates have at least one credit card, and 92 percent of them use credit cards to pay for some college expenses. —Kelly Field