Make it. so. Passing the committee is now the first obastacle passed. Still too many more to go, but this is vitally required legislation (even in a watered down version) to set the playing field for consumers on more level ground.

In a blow to financial firms, the U.S. Senate Banking Committee on Tuesday signed off on legislation that seeks to ban abusive credit-card practices.

While consumer groups and key Democrats lauded the committee’s move, the 12-to-11 vote in favor of the controversial bill was very narrow. Thus, the committee’s chairman, Sen. Christopher Dodd (D., Conn.), said he would work with lawmakers–both Democratic and Republican–to modify the bill and broaden support before the bill hits the Senate floor.

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The bill seeks to prohibit card issuers from unfairly raising interest rates. It would prohibit applying rate increases retroactively to existing balances and it seeks to boost consumer disclosures. Additionally, it seeks to limit certain over-the-limit fees and interest charges and creates new requirements for card issuers looking to extend credit to youngsters under the age of 21. The amended bill would also make it easier for gift-card recipients to use the cards.

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Still, one key Democrat joined Republicans to vote against the credit-card proposal. Sen. Tim Johnson (D., S.D.), said in a statement that the legislation “goes too far in prohibiting lenders from adjusting prices to account for increased risk.”…

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“The American Bankers Association is very disappointed by the action today of the Senate Banking Committee,” the bank group said in a statement after the committee vote. “We have deep concerns that the legislation passed by the committee will harm consumers and the economy at the very time our country can least afford it.”

At the same time, the Credit Card Accountability Responsibility and Disclosure Act, or CARD Act, is strongly backed by consumer groups such as the Consumer Federation of America and Consumers Union. Source

Gee, what might prompt a Congressperson from South Dakota to vote nay regarding reining in bank and credit cards, pray tell? (That’s a rhetorical question — see the link.)