It's legislation aimed at protecting consumers, but Governor Mike Rounds says it could come with a cost. Congress is calling it the Credit Cardholders Bill of Rights.

It's a bill that would ban a variety of fees, require card companies to give notice of interest rate increases, and lock in introductory rates. Card companies would also be completely banned from marketing credit cards to college age voters and teenagers. If passed the bill wouldn't go into effect for nine months to a year.

Governor Rounds says South Dakota's credit card industry could be stuck paying the price for President Barack Obama's attempt to reform the credit card industry. If the bill passes Rounds says thousands of South Dakota workers could be out of job.

"The intentions may be good, but I'm afraid what they are going to do is cost South Dakota between three and five thousand jobs," Governor Mike Rounds said.

And that's why Governor Mike Rounds is concerned about the cost of the Credit Cardholders Bill of Rights. 

"It's a knee-jerk reaction, it's one that should not have occurred, and I'm afraid not only will it cost us between three and five thousand jobs, but it may very well cost 70 million Americans this type of a card," Rounds said.

Rounds agrees with most of the bill but is against the section that would crack down on high interest credit cards for consumers with bad credit scores. Rounds says the law will put South Dakota card companies in a crunch and lead many customers to other high-interest loans. 

"There's 70 million of those cards in America today that will probably become extinct, and they will have only pay-day lending, which is marginally regulated, as a place to go," Rounds said.

And Rounds says if Congress passes the new rules South Dakota companies will also have no place to go. 

"If they can find that business model that would make them more competitive in that area they would be doing it. They haven't found one and I'm afraid what it means is those low-limit credit cards may be a thing of the past. That's the problem."

Representative Stephanie Herseth Sandlin voted against the bill in the House, but it is expected to pass the Senate.

First Premier Bankcard in Sioux Falls, a company that caters to customers with bad credit, will not comment on the bill until it passes.

Citibank did not return a phone call from KELOLAND News.