The Credit Cardholders Bill of Rights gives more room and space for credit card holders in the US. Before voting, the legislation was revised to add a provision that would require lenders to apply customers’ credit card payments to the highest interest rate debt first. The bill also limits interest rates and unfair fees.

In short:

Cardholders shall no longer have to endure universal default (when issuers increase interest rates for customers who miss a payment on another accountCardholders shall have ample time to pay bills: statements must be mailed 25 calendar days before due date.

Cardholders shall have protection against arbitrary interest rate increases.

Cardholders shall receive proper notifi- cation of interest rate increases with a 45 day notice.

Cardholders shall receive fair allocation of payments to different balance rates.

Cardholders shall have the right to set limits on their own credit.

Cardholders shall no longer be subjected to double-cycle billing, a practice that hurts cardholders who pay off balances in full in one statement but not the next.

Cardholders shall have payments credited properly on due dates if made before 5 P.M. EST.

The bill requires credit card lenders give consumers a 45-day notice prior to any interest rate increase. The bill is expected to pass quickly through the Senate especially since it has the full support of President Barak Obama and his White House staff.