Consumers Less Likely to Apply for Store Credit Cards Due to New Federal Reserve Rules
Majority of consumers uncomfortable sharing private financial information
Flemington, NJ, December 8, 2009 – A new media study among 301 Americans revealed that the majority (64%) were less likely to apply for store credit cards after viewing a news clip featuring new Federal Reserve guidelines, which require consumers to provide personal financial information.
The study was conducted by HCD Research using its MediaCurves.com® website on December 7-8 to obtain viewers’ perceptions of a news clip highlighting recent Federal Reserve guidelines that will require consumers to provide more personal financial information when they apply for retail store credit cards. To view agreement curves and detailed results go to: www.mediacurves.com.
The majority of the viewers (69%) indicated that they were not comfortable sharing private financial information with retail store employees when applying for a store credit card. In addition, the majority of viewers (63%) reported that it was fair for stores to ask about a consumer’s annual income when they apply for a store credit card.
Among the findings:
How do these rules affect your likelihood of applying for a store credit card in the future?
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Total
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I am more likely to apply for a store credit card
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4%
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I am less likely to apply for a store credit card
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64%
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I am just as likely to apply for a store credit card
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32%
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How comfortable would you be sharing private financial information with retail store employees if applying for a store credit card?
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Total
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Very comfortable
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5%
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Somewhat comfortable
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26%
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Not comfortable
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69%
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Do you think it is fair to ask about the annual income of customers applying for a store credit card?
While viewing the video, participants indicated their levels of agreement by moving their mouse from left to right on a continuum. The responses were recorded in quarter-second intervals and reported in the form of curves. The participants were also asked to respond to post-viewing questions.
Editors/Reporters: For more information on the study, or to speak with Glenn Kessler, president and CEO, HCD Research, please contact Vince McGourty, HCD Research, at (908) 483-9121 or (vince.mcgourty@hcdi.net). You can also receive updates from MediaCurves.com by following us on Twitter: http://twitter.com/mediacurves and Facebook: http://www.facebook.com/pages/Flemington-NJ/MediaCurves/86691908820
HCD Research is a marketing and communications research company headquartered in Flemington, NJ. The company's services include traditional and web-based research. For additional information on HCD Research, access the company’s web site at www.hcdi.net or call HCD Research at 908-788-9393. MediaCurves.com® (www.mediacurves.com) is a media measurement website that provides the media and general public with a venue to view Americans’ perceptions of popular and controversial media events and advertisements.
The subject matter was interesting
We cannot expect a merchant to automatically approve a credit card by a consumer simply asking for it. This is one of the reasons that gets the consumer in debt so easily and why the merchant does not get his money. It is common sense.
well that's very interesting. Who's ox is being gored? The retailer's! In the final analysis, these instant credit card at 39.99% apr are a scandal but they assure I can leave the store with a bag of good and that the store makes a sale.
Income should be required when applying for a credit but not at the cash register with customers standing in line at the checkout. This is a very interesting and worthwhile survey and an amazing new trend in the world of retail if this passes.
I quess my fathers old saying still stands...if you don't have the cash, go without buying.
That was information I had not seen in the news. Thanks!
it seems unfair for the government to get in on this
they should tell you to apply online - no worry about privacy in front of store employees and customers
someone needs to control people abusing credit. That is why companies go out of business, people can't pay their bill.
I feel anyone that can't afford a credit card bill has no business trying to open an account
The government should not be in charge of deciding who gets credit. The business owner should. The customer should be held responsible for any credit they use and made to pay the entire amount with terms agreed to by the business owner.
Getting a credit card at footall games should definitely be discouraged ... entice one in with a free t-shirt or some other logo item ... college students love getting a "free" credit card......
I'm not entirely opposed to stores instituting stricter policies when agreeing to grant a store credit card. However, I do object to any information being given out at the sales counter for others to hear and/or see.
I am a recent victim of identity theft, so I don't believe asking personal questions about finances should be allowed.
I DO NOT HAVE A CREDIT CARD...THANK GOD. I THINK IF MORE PEOPLE WOULD DO WITH OUT ONE WE WOULD NOT BE IN THE MESS WE ARE IN TODAY.
i feel that they have the right to ask questions like that
This survey was the first seen recently that really addresses economic pitfalls for consumers. Too many credit cards are issued to people who do not have the assets to pay the monthly charge account bills.
people will lie about their income etc. to get a credit card at the store so what would government control do?
I think it should depend on the purchase. I use to open credit lines for my customers...but it was for non secure loans...and usually the average purchase was about 2,500. They were buying furniture...and yes I would ask personal questions. But there were no waiting customers behind my customer.
Short and to the point I like that - there is too much credit now and with 10% + in unemployment - it is no longer a buyer beware but a retailer beware.
i think the dea is a good one but i would never give
out my personal information in a public place
I think the stores are going to far in asking for a potential credit card holder to give up their information to just anyone in front of a store full of people peering over your shoulder looking at your information.This should be done in a private area in the store with no one looking
I think the government is in our purses and wallets too often as is. We do not need further interference with our money.
the government needs to stop wasting money on things like this, instead they need to help the people not big business and loan companys, the fact is if the bail out money would have gone to the people the economy would be in much better shape, smart people would have used the money to make mortage and rent payments or credit card bills or utilities or other loans and the rest would have just spent the money which would have benifited many companys so it is a win win situation,
some of this is getting out of hand on the governments part. It was too easy for alot of people to get credit cards.
I would give my personal information out to get a charge card if I desired a specfic card, but not to an employee of a retail store. To much fraud already.
another example of too much government regulation!
I do NOT like the government sticking their regulations in our private lives and in businesses; but, I like it even less when I have to pay for other people's debts (whether it be credit cards, homes, cars, lazieness, etc.) because they do not, and probably never will learn how to MANAGE THEIR MONEY!!
Any institution that one is applying for a credit card/store card should inquire as to the financial means which will be used to pay the balance of the card, however, I feel a private method of doing so is necessary-not an employee working at the store, rather a credit reporting institution.
With today's risk of ID thieft, it will make most people very uncomfortable applying for a card in front of strangers.
I have only 2 credit cards now as I am on social security and simply do not want more cards.
i feel that if the new law is passed less customers will apply for a credit card. as long as people are given a credit card and they have a small charge amount available and get increases in time as they pay payments like they should i think that is very fair.
too many rules
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I for one, don't mind the additional information required. Less companies will need bailing out if they had stricter guidelines reguarding who they give credit to. Some people simply over extend themselves and we the other tax payers have to cover their debts, by paying hire taxes.
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