Washington DC, Nov 5 (THAINDIAN NEWS) The House voted on Wednesday in favor of imposing tough new rules for credit card companies after there were numerous complains of steep hike in interest rates and steep new fees as well.

The bill, was approved by the figures of 331-92. The proposal’s chances in the Senate were very less. Democrats were of the view that the bill was a stern warning shot to lenders to stop price gouging.

“This is both real and a lesson to them,” said Rep. Barney Frank, D-Mass., the chairman of the House Financial Services Committee.

“The same companies that were in my office that claimed they needed months at least to make changes to their systems, apparently only needed in some cases days to find ways to raise interest rates and decrease credit limits on customers across the country,” said Rep. Dan Maffei, a New York Democrat.

The bill “limits choice, rations credit, increases costs and it strangles innovation,” said Rep. Spencer Bachus of Alabama, the top Republican on the House Financial Services Committee.