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May 06, 1999, Thursday

SECTION: News; Pg. 40

LENGTH: 212 words

HEADLINE: HOUSE OKS TOUGH CREDIT CARD BILL

BYLINE: By TIMOTHY J. BURGER Daily News Washington Bureau

BODY:

WASHINGTON The House last night passed a bill giving credit card companies more leverage to make deadbeat cardholders pay up.

The bill was passed, 313 to 108, getting solid support from Republicans but splitting Democrats. The Senate hasn't yet voted on parallel legislation.

White House aides are recommending that President Clinton veto the GOP-driven overhaul of federal bankruptcy law, which they say creates a "means test" to determine whether debts must be repaid gradually or erased entirely while under Bankruptcy Court protection from creditors.

"This bill is one of, by and for the credit card companies," said Rep. Jerrold Nadler (D-Manhattan). "It's the worst special interest bill I can recall in my years in public life."

Visa USA and MasterCard International spent millions lobbying for it over the past year, saying their losses from forgiven debts in bankruptcy have forced them to raise interest rates for consumers who handle credit responsibly.

The Senate version is expected to hit the floor before Memorial Day.

Republicans insist the bankruptcy bill "stress[es] personal responsibility," as Rep. Vito Fossella (R-S.I.) put it adding that he hopes it will encourage consumers "to just say no" to out-of-control spending.

LOAD-DATE: May 06, 1999