Sens. Chris Dodd (D-CT) and Carl Levin (D-MI) today introduced a new bill to help shield credit card holders from exorbitant fees and penalty interest rates. The legislation would, amongst other things, restrict credit card companies from charging customers for snail mail or telephone payments, institute a number of restrictions on how card issuers can implement penalty fees, and increase to 45 days the length of notice required for banks to make account changes.

As the AP notes, the credit card industry isn’t having a particularly good year:

Scrutiny of the industry comes at a time when consumers are defaulting at high levels on credit card bills.

Last month, Fitch Ratings said its index of charge-offs on prime credit card portfolios rose in December to its highest level in four years. The rate at which cardholders repaid outstanding balances, meanwhile, slowed to its lowest since mid-2004.

Charge-offs are loans written off as not being repaid.

While this legislation still faces many obstacles before it clears the Senate Banking Committee through the legislative process, it’s probably fair to assume that at least some elements of it will gain momentum—due to both consumer demand and because Sen. Dodd is the committee Chairman. It also serves as a good reminder to always read the fine print to avoid big penalties on your credit card.