Some Factors Affecting Awareness of Annual Percentage Rates in Consumer Installment Credit Transactions

Parker, George G. C.; Shay, Robert P.

doi:10.1111/j.1540-6261.1974.tb00037.x

Cited by 20 publications

(7 citation statements)

References 2 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…To make rational decisions consumers need to know the constraints they face. Research workers have frequently been concerned that consumers, particularly the poor, do not have this information (Parker and Shay 1974). Shay and Dunkelberg (1975) found that knowledge of interest charges on card credit was not widespread and varied with income-only 20 percent of the poorest group and 40 percent of the richest group knew these rates.…”

Section: Model Of a Rationed Marketmentioning

confidence: 97%

Credit Cards: An Interdisciplinary Survey

Garcia¹

1980

J CONSUM RES

View full text Add to dashboard Cite

show abstract

Section: Model Of a Rationed Marketmentioning

confidence: 97%

Credit Cards: An Interdisciplinary Survey

Garcia¹

1980

J CONSUM RES

View full text Add to dashboard Cite

show abstract

“…Education and income are key determinants of knowledge about consumer credit and credit cards (Bowers, 1979;Brandt, Day, & Deutscher, 1975;Durkin, 1975;Hill, 1963;Kinsey & McAlister, 1981;Mandell, 1971Mandell, , 1972Parker & Shay, 1974;Smythe, 1970 (Crawl, 1981;Hull, 1978;Samuels, 1976). However, Bowers (1979) found that there were significant negative coefficients for eight of the knowledge scores in relation to both average monthly balance and the average number of months in which credit limits were exceeded.…”

Section: Previous Research Credit Card Knowledgementioning

confidence: 99%

“…One of the reasons for the misuse of credit cards is that consumers do not seem to have complete and accurate knowledge regarding credit cards (Bowers, 1979;Brandt, Day, & Deutscher, 1975;Durkin, 1975;Hill, 1963; Kinsey & McAlister, 1981;Mandell, 1971Mandell, , 1972Parker & Shay, 1974; Smythe, 1970). Financial educators and counselors can assist people who misuse credit cards by increasing these people's k6~o~lcdge level about credit cards.…”

mentioning

confidence: 99%

Knowledge, Beliefs, and Practices in the Use of Credit Cards

Danes

Hira

1990

Home Economics Research Journal

View full text Add to dashboard Cite

The purpose of this study is to investigate the relationships arnong knowledge, beliefs, and practices in the use of credit cards. Data were collected from 198 household money managers in a midwestem town during 1982. Those respondents with high levels of credit card knowledge believe credit cards should be used more for installment reasons than convenience reasons. Those respondents who believe credit cards should be used for installment reasons are inclined to use more credit cards and to accumulate finance charges more often. Those with more education and income have a higher level of knowledge than those with less education and income. The older respondents and those with low incomes believe that credit cards should be used for convenience reasons. Those with high education levels and large household sizes use more credit cards and accumulate finance charges more often.

show abstract

“…Consumer knowledge of APRs has been measured in two ways: (1) comparing the perceived APR for a hypothetical $1000 car loan with the actual APR being paid by the respondent for a current or recent car loan [71, and (2) creating awareness zones defined by normal minimum rates for different types of credit [ 11,131. The first approach has two serious limitations.…”

Section: Problems Defining Accuracy Of Knowledgementioning

confidence: 99%

“…Despite these gains the majority of borrowers still lacked reasonable knowledge of the APR on a recent purchase. More accurate knowledge tended t o be positively associated with education, familiarity with TIL, and total debt burden [ 11 ] . …”

mentioning

confidence: 99%

Information Disclosure and Consumer Credit Knowledge: A Longitudinal Analysis

Brandt

Day

Deutscher

1975

Journal of Consumer Affairs

View full text Add to dashboard Cite

Early evaluations of Truth-in-Lending have observed impressive gains in consumer knowledge about interest rates. Contrary to original goals, consumers with more education, income, and debt experience have benefited far more than low-income and minority consumers. How will these results change over time as consumers gain credit experience with the aid of disclosure? Has disclosure improved consumer understanding about finance charges, and what factors beyond socio-economic status might have enhanced consumer knowledge of credit terms? These questions are addressed in this report of a large sample of California households surveyed at two points in time. The longitudinal analysis shows individual changes in knowledge, the effects of credit experience on learning, and a projection of future levels of credit knowledge.Truth-in-Lending (TIL) was implemented on July 9, 1969 with the expectation that improving consumer knowledge of annual percentage rates (APR) and dollar finance charges associated with consumer credit purchases would lead t o more informed credit decisions [ 15 I . This article examines the present accomplishments and future prospects for achieving the first of these two goals: changes in the level of consumer knowledge of credit terms.Other studies of the impact of TIL have found impressive increases in knowledge of APRs during the first fifteen months after regulation [7, 13, 141. Despite these gains the majority of borrowers still lacked reasonable knowledge of the APR on a recent purchase. More accurate knowledge tended t o be positively associated with education, familiarity with TIL, and total debt burden [ 11 ] .

show abstract

Some Factors Affecting Awareness of Annual Percentage Rates in Consumer Installment Credit Transactions

Cited by 20 publications

References 2 publications

Credit Cards: An Interdisciplinary Survey

Credit Cards: An Interdisciplinary Survey

Knowledge, Beliefs, and Practices in the Use of Credit Cards

Information Disclosure and Consumer Credit Knowledge: A Longitudinal Analysis

Contact Info

Product

Resources

About