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Corporate Social Responsibility
News
10.18.2005 ET
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CSR News from:
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HSBC -- North America
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News Category:
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HSBC Survey: Consumers Slow to Seek Free Credit Reports, Despite Identity Theft Fears
As HSBC launches third year of 'Your Money Counts,' new survey shows just 40 percent take advantage of FACT Act to check for credit report errors
(CSRwire) PROSPECT HEIGHTS, Ill. - A new survey by HSBC - North America finds
that while 82 percent of consumers fear identity theft, only four in 10
have taken advantage of the recent law - the Fair and Accurate Credit
Transactions Act (FACT Act) - that gives consumers free access annually to
their credit reports to check for errors.
Checking credit reports regularly can help consumers detect identity
theft, which, according to the Federal Trade Commission, has struck 27.3
million Americans in the past five years. It's also an opportunity for
consumers to understand their credit status, see how their financial
decisions impact their credit standing and assess their progress toward
achieving financial goals.
"Knowing your credit history represents the first step toward
understanding and managing your financial well-being," says Loretta
Abrams, vice president of community development and consumer advocacy at
HSBC - North America. "The second step is to develop a spending and
savings plan that works for you."
To help consumers better understand their financial status and manage
their finances proactively, HSBC today launched for the third consecutive
year its "Your Money Counts" financial-education campaign. HSBC's
comprehensive financial education Web site, www.yourmoneycounts.com,
provides consumers with a variety of valuable tools and information about
saving, budgeting, planning and credit management.
"Our survey revealed that consumers have some real concerns about managing
and protecting their finances. At the same time, some are missing basic
steps they could be taking to turn those concerns into opportunities to
enhance their financial futures," says Abrams. "Yourmoneycounts.com
provides resources and guidance on how to do just that."
HSBC's survey underscores the importance of consumers knowing their credit
status as the initial step toward securing their financial future. The
survey found that:
More than 90 percent of consumers know their credit score impacts
their ability to make major purchases such as a home, but only one-third
actually know their score.
More than one-third of people who received their free credit reports
found errors in them.
Of the consumers who received their free credit report, only 21
percent paid the extra fee to get the credit score.
Recognizing how creditors view consumers' financial standing also provides
a reality check of how well they're managing their money. Sound management
can be maintained or improved with a smart plan for budgeting expenses.
However, HSBC's survey found that the majority of consumers are not
budgeting or saving to meet their financial needs:
Only 26 percent of consumers actually stick closely to their
budget.
More than 80 percent are concerned about the level of their
savings.
Should they face an unexpected life crisis, four in 10 consumers do
not have enough money in savings to cover more than one month of basic
living expenses.
At www.yourmoneycounts.com,
consumers will find a variety of resources to test their financial
knowledge and learn more about saving, budgeting, planning and credit. The
site also features online calculators customized to address spending,
budgeting and savings questions. Further, for a limited time visitors can
take a financial quiz to win various prizes, including financial slide
calculators and a credit education book.
About HSBC North America Holdings Inc.
HSBC - North America comprises all of HSBC's U. S. and Canadian
businesses, including the former Household International businesses. The
company's businesses serve nearly 60 million customers in five key areas:
personal financial services, consumer finance, commercial banking, private
banking and corporate investment banking and markets. Financial products
and services are offered under the HSBC, HFC and Beneficial brands. For
more information, visit: www.hsbcusa.com.
Methodology
This survey was commissioned by HSBC - North America and conducted by
TNS-NFO in August 2005. It was administered online among a representative
sample of individuals aged 18 or older. Total sample size is 1,506
respondents.
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