Now that the subprime mortgage industry has collapsed, policymakers fear that Americans are shifting their debt to credit cards with deceptive and exploitive terms.

The Center for American Progress, a liberal think tank, recently released a report that found that credit card debt rapidly accelerated last year. Members of Congress are scrambling to fix the problem, but political opposition will make a solution difficult to pass.

Sen. Carl Levin, D-Mich., has proposed regulating the credit card industry to prohibit certain practices, such as charging interest on debt that was paid on time and charging multiple fees for one instance of exceeding the credit limit.

Sen. Ron Wyden, D-Ore., proposed a different solution: a five-star rating system of credit cards, similar to the crash test ratings for cars. Credit cards with more consumer-friendly terms would get higher ratings.

The Center for American Progress held a forum this week to discuss potential solutions.

Wyden pitched his plan to the forum’s audience, but some of the other panelists voiced concern about the practicality of the proposal.

Wyden’s bill, which he introduced with Sen. Barack Obama, D-Ill., would require the Federal Reserve Board to maintain rankings of credit cards. Using criteria in the bill, the Fed would rate each card from one to five stars. Contract terms that would hurt a card’s rating include binding arbitration provisions, applying interest rate increases to debt that has already been incurred and using junk mail to inform consumers of changes to their agreements.

Companies would be required to include their rating on every marketing material and credit card application. The Fed’s Web site also would list the ranking for each card.

“I’ve always felt that in a free society, people certainly have the right to take actions that are wasteful or ill advised,” Wyden said. “In effect, all of us have a constitutional right to be foolish. The trouble with credit cards is that all too often the marketplace fails the millions and millions of Americans who want to manage their money responsibly.”

A big problem, Wyden said, is that these terms are often buried in fine-print legalese. His rating system, he said, would help consumers make smart decisions.

“Consumers ought to have the tools to make informed choices,” Wyden said.

Wyden said the plan’s model, the car safety ratings, has prompted automakers to compete based on safety.

Leonard Chanin, associate director of the Federal Reserve’s Division of Consumer and Community Affairs, told the audience that while Wyden’s proposal is “an intriguing idea,” he sees “some real difficulties” in determining the number of stars a card would receive.

“One credit card may have an annual fee of $50 and an interest rate of 14 percent,” Chanin said. “Another may not have an annual fee but may have an interest rate of 19 percent. Depending on how you use your card, one of those products is going to be better for you.”

Wyden’s proposal, by delegating the ranking to the Fed, allows government to be “choosing the winners and losers in the marketplaces,” said Jonathan Orszag, senior managing director at Compass Lexicon and a former Commerce Department official.

“Ideas like Sen. Wyden’s are the right direction,” Orszag said. “I have issues with the details.”

Wyden said that while he agrees with much of Levin’s regulatory proposal, he worries that banning certain deceptive practices will just cause companies to create new schemes.

“What will happen is you’ll keep the basic system, and credit card companies will just invent new practices that will cause consumers most of the same problems they’re facing today,” Wyden said.

Wyden also suggested that his bill might be easier to pass, particularly in a presidential election year that shortens the amount of time Congress is in session.

“Congress is going to have to concentrate on something that’s doable and can help consumers immediately,” Wyden said.

Both the Wyden and Levin bills will face significant industry opposition, predicted Tamara Draut, director of the Economic Opportunity Program at Demos USA, a think tank.

“I’m not optimistic that either of those proposals are just going to sail through Congress,” said Draut, who researches growing household debt burdens.