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With Colorado Congresswoman Betsy Markey leading the charge, the U.S. House yesterday voted to move up the deadline for credit card companies to comply with federal credit card reform legislation.

The 331-92 vote came after Markey, D-Fort Collins, expressed great anger and frustration over credit card companies changing agreements — including raising interest rates on consumers by as much as double — in anticipation of the legislation. With the holiday season approaching, lawmakers made the issue an urgent matter.

When President Obama signed the legislation back in May, the Credit Card Accountability Responsibility and Disclosure Act (CARD Act) was intended to take effect Feb. 22. But the Expedited CARD Reform for Consumers Act moves up the start date to Dec. 1 in order to protect consumers. 

“I am appalled at the complete and utter disdain with which credit card companies are treating their customers,” Markey said in a statement following the vote. 

In addition to writing letters demanding that the companies halt the practice of changing terms, Markey offered an amendment that provides market-based incentives to card issuers that impose a moratorium on increases in rates, fees, and terms and conditions of a contract on purchases made between the date of the bill’s enactment and Feb. 22. The amendment essentially keeps the February implementation date for card issuers that agree to freeze rates and fees.

“Passing this amendment and the underlying bill is a great win for Colorado families and businesses, and I’m proud to have led this effort,” said Markey.

House lawmakers are now waiting on the Senate to pass similar legislation. 

A portion of the legislation took effect in August when credit card companies were required to give 45 days notice on major changes to terms, including rate hikes. Banks are also required to give consumers 21 days notice before a bill is due. 

Consumers have also been given the right to reject changes to contracts and pay off their balance at the existing rate within five years.

The parts of the reform legislation that would be moved up to December requires banks to apply payments to higher-rate balances first, limits rate increases and bans practices such as “universal default,” or raising rates based on a missed payment with another lender.

The bill to expedite implementation of the reform effort garnered the support of all Democrats and close to half of Republicans. But Federal Reserve Chairman Ben Bernanke warned of “unintended consequences” associated with an earlier date, especially with smaller credit card companies. He said the earlier date might not afford “sufficient time for implementation to allow for an orderly transition and to avoid unintended consequences, compliance difficulties and potential liabilities.”

Critics are concerned that credit card companies might pass the cost of an earlier implementation date on to their customers.

But U.S. Sen. Mark Udall, D-Colo., is encouraging his colleagues to back legislation he’s introduced that would mirror the House bill and provide consumers relief from “unfair credit card practices.”

“Earlier this year, we passed common-sense reforms that were designed to stop credit card companies from taking advantage of their customers, and we gave them until February to implement the reforms,” said Udall, who co-sponsored the CARD Act and pioneered credit card reform with similar legislation in 2005. “But instead of using this time to phase out their most egregious practices, credit card companies have hammered American consumers and small businesses with arbitrary interest rate hikes and other unfair practices.”

Congressman Ed Perlmutter, D-Lakewood, called the expedited reform legislation “common-sense reform.”

“Hard working Americans who make payments on time, have good credit, and live within their means see their rates increase without notice and without cause,” he said. “Expediting credit card reforms will level the playing field between consumers and credit card companies and provide much-needed financial relief to consumers.”

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