“A Conversation on Latino Credit Card Use” Highlights the Obstacles Latinos Face When Trying to Establish Credit History

“Increased reliance on credit cards as a way to build a credit history exposes Latino consumers to financial predators and accumulation of debt, according to the National Council of La Raza (NCLR), the largest Latino civil rights and advocacy organization in the U.S., which today released a transcript of a roundtable session from the 2006 NCLR Annual Conference, A Conversation on Latino Credit Card Use. The discussion shed light on the growing number of Latino consumers who rely on credit cards as a way to supplement their income and to build credit.

“Latino purchasing power has grown to nearly $700 billion, yet very little is known about the impact of credit card industry practices on our community. This is especially troubling since many Latino families are using credit cards to pay for basics such as food and gas rather than luxuries,” said Janet Murguí, NCLR President and CEO. “This is a concern given the high cost of fees associated with credit card use,” she added.

Panelists highlighted the growing number of Latino consumers who are victims of credit card fraud. A 2003 survey by the Federal Trade Commission showed that Latinos are twice as likely as non-Latino Whites to be victims of fraud. Participants also concluded that Latino consumers need targeted education and financial counseling to build a deeper understanding of credit card policies and practices.

Participants in the roundtable included representatives from the YWCA, the Federal Trade Commission, Office of the Comptroller of the Currency, and Money Management International.”

Stumble it! | |