U.S. President Barack Obama on Friday signed into law a landmark credit card bill that will eliminate sudden interest rate increases and excessive fees to protect millions of consumers.

Both the U.S. Senate and House approved the legislation by wide margins and with broad bipartisan support earlier this week.

As millions of credit card holders struggle with high balances amid a deep recession, President Obama has been pushing for more actions to give consumers greater protections.

"With this new law, consumers will have the strong and reliable protections they deserve," Obama said on Friday afternoon at the signing ceremony.

"We will continue to press for reform that is built on transparency, accountability, and mutual responsibility -- values fundamental to the new foundation we seek to build for our economy, " said the president.

"We're not going to be giving people a free pass and we expect consumers to live within their means and pay what they owe. But we also expect financial institutions to act with the same sense of responsibility that the American people aspire to in their own lives," he added.

The legislation prohibits card companies from raising interest rates on existing balances unless the borrowers are at least 60 days late paying a bill. If the cardholder pays on time for the following six months, the company will have to restore the original rate.

The legislation also requires those under 21 who seek a credit card to prove first that they can repay the money or that a parent or guardian is willing to pay off their debt if they default.

Consumers would have to be notified of rate increases 45 days in advance.

Christopher Dodd, chairman of the Senate's Banking Committee, who authored the law, said it "cements a victory for every American consumer who has ever suffered at the hands of a credit card company."

"Many Americans depend on credit cards to get by in this economy, and today they have won a giant victory that ensures they are protected from practices that would drive them further into debt, while also making our economy stronger," Dodd said.

Treasury Secretary Timothy Geithner said on Tuesday that the bill will help create "a more fair, transparent and simple consumer credit market."

(Xinhua News Agency May 23, 2009)