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WASHINGTON (AP) - Legislation proposed Tuesday would outlaw some credit-card billing and interest-rate practices that critics say confuse consumers and can push them deeper into debt.
The bill authored by Sens. Carl Levin, D-Mich., chairman of the Homeland Security and Governmental Affairs Committee's investigative panel, and Claire McCaskill, D-Mo., would ban interest from being charged on any portion of a credit card debt that the consumer paid on time during a grace period.
It also would limit so-called penalty increases in interest rates, which are imposed when a payment is made after the due date, to a maximum 7 percentage points above the current rate.
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