Senator Ron Wyden will visit the University Wednesday to discuss student debt and announce legislation designed to help consumers differentiate between good and bad credit cards.
The legislation, known as The Credit Card Safety Act of 2007, is being co-sponsored by Wyden and Sen. Barack Obama. Wednesday’s news conference will focus on student debt and credit card solicitations to college students in a time of rising tuition costs.
Wyden will meet with students and financial aid administrators at 10:30 a.m. in the Owyhee Room in the EMU. A press conference will follow at 11 a.m. in the Umpqua Room.
ASUO President Emily McLain said the topic is important because debt can limit students’ choices after college. “I think it’s important for student to attend to see what one of Oregon’s senators is doing about credit cards and specifically student debt,” McLain said.
The legislation Wyden plans to announce would create a five-star safety rating system for credit cards. One star would indicate the lowest safety rating and five stars would indicate the highest. The stars would be displayed on all marketing materials as well as on the backs of credit cards.
The safety of each card would be determined based on the terms of the agreement consumers have to sign. Lower ratings would be given to cards with terms that are hard to understand or have hidden fees or arbitrary deadlines, such as payments due by mid-afternoon on the payment date.
Tom Townslee, state communications director for Wyden, said the legislation is not aimed at regulating the credit card industry as much as it is aimed at informing consumers of the risks of each card.