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Legislation to curb credit card fees and limit consumer penalties cleared a congressional panel on Wednesday, a day ahead of a meeting between industry executives and President Barack Obama at the White House.

The bill is an early test of political will for Democrats pushing for regulatory reform amid the economic crisis and would mean sweeping changes for card-issuing banks, many of which have received government bailout money.

Members of the House Financial Services Committee voted 48 to 19 for the Credit Cardholders’ Bill of Rights which in practice would codify into law restrictions on deceptive practices issued by the Federal Reserve in December.

The legislation would stop credit card issuers from imposing arbitrary interest rate increases and penalties, and halt certain billing practices.

Nine Republicans, or almost a third of that party’s members on the committee, voted in favor of the measure.

Committee chairman Barney Frank told reporters after the vote he was not surprised the measure attracted bipartisan support. “The mood in the country has changed,” he said.

Frank said Obama, who campaigned for credit card reforms, wants to make changes to the bill. Frank provided no details.

Later on Wednesday, White House spokesman Robert Gibbs told reporters that Obama wanted to make sure the legislation codified the Fed’s rules into law.

Executives from Bank of America Corp, American Express Co, Citigroup Inc, Wells Fargo & Co, JPMorgan Chase & Co, Capital One Financial Corp, Visa Inc and MasterCard Inc will be among 13 credit card executive due to meet Obama early on Thursday afternoon at the White House faxless payday loans.

“We are working closely with Congress on legislation that will promote simplicity, require transparency, demand fairness, and ensure accountability — so that we can strengthen consumer protections against abusive and deceptive practices,” White House spokeswoman Jen Psaki said.

Banks say the legislation would hurt fee income at a time when they are trying to climb out of a financial hole created by the collapse of the housing boom.

The American Bankers Association trade group, which represents the biggest credit card issuers, said it is concerned the House bill could reduce the availability of consumer credit and make it more expensive.

Ed Mierzwinski, consumer program director at the U.S. Public Interest Research Group, said consumer groups supported making the Fed rules law, but wanted to go further.

“We hope the president will also support further reforms, such as the… Senate’s stronger ban on ‘no reason’ fee increases and its protection for college students from unfair credit card marketing,” Mierzwinski said.

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