The U.S. credit card market is showing signs of trouble just as the home mortgage foreclosure crisis surges to unprecedented heights across the United States and throughout the global financial marketplace. As borrowing in the mortgage market slows, credit card borrowing is rapidly accelerating. In the end, borrowers who are solicited to take out a new credit card on terms they do not fully understand could end up defaulting on their credit cards. Just as consumers defaulted on subprime mortgages, credit card defaults could add additional turmoil in financial markets and the economy. These problems can be nipped in the bud by creating a fairer credit card market for consumers so they can use credit wisely. With more control of their credit card accounts, borrowers will be better able to avoid the downward spiral into default.
We invite you to join us as Sen. Ron Wyden (D-OR) speaks about his bill that will create a five-star safety rating system for credit cards, followed by a discussion where experts share steps needed to inform Americans about the best credit card options. Panelists include a representative of the credit card industry and of government regulators of credit cards, as well as the perspective of credit card users. The event will feature the release of the paper "House of Cards," authored by the Center for American Progress Action Fund, to provide background of how increased credit card debt could lead to a deeper credit crunch.