HSBC Survey: Consumers Slow to Seek Free Credit Reports, Despite Identity Theft Fears

Published 10-18-05

Submitted by HSBC -- North America

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.

HSBC -- North America

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.

HSBC Survey: Consumers Slow to Seek Free Credit Reports, Despite Identity Theft Fears

HSBC Survey: Consumers Slow to Seek Free Credit Reports, Despite Identity Theft Fears

HSBC -- North America

HSBC -- North America

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