We’ve known all along that consumers want to be treated fairly and honestly when it comes to their money. That’s why it doesn’t surprise me that with the new laws in place, people are receptive to trying out additional card offers." -Atakan Cetinsoy
San Francisco, CA (PRWEB) March 25, 2010
More than one third of consumers are now willing to open a new credit card account, according to a proprietary survey conducted by moneyStrands, a leading personal finance management (PFM) site. The survey was designed to understand consumer reaction to the new Credit Card Accountability Responsibility and Disclosure Act of 2009.
While the majority of respondents did react positively to the new laws, 18 percent said they would not consider a new credit card because they still felt nervous about how they would be treated.
“We’ve known all along that consumers want to be treated fairly and honestly when it comes to their money,” observed Atakan Cetinsoy, vice president of personal finance products at Strands Labs Inc. “That’s why it doesn’t surprise me that with the new laws in place, people are receptive to trying out additional card offers. It underscores the importance of offering services that are beneficial to the consumer. This kind of thinking is a driving reason why Strands goes to great lengths to ensure its technology provides users financial offers, like credit cards, that are customized to reflect their personal financial habits,” adds Cetinsoy.
The new law put into place several new protections, and consumers were split when it came to what was most helpful. Thirty percent agreed that it is appropriate to ban rate hikes on existing credit card balances unless the person was 60 days past due. Some (22%) liked the requirement that payments made above the minimum payment must be applied to balances with the highest interest rates. And 21 percent agreed it was good to require higher penalty rates be lowered if a person, who was delinquent for paying one bill late, paid on time for six straight months. Eighteen percent thought it worthwhile that banks are now prohibited from using a previous month’s balance to determine finance charges. Only nine percent cared that rate increases on one card would no longer be allowed on another account.
The survey also found that when it came to finances, savings and paying down debt still remain extremely important. One aspect of the new credit card law requires banks to show how much it will cost, and how long it will take, to pay off a balance if a person only pays the minimum payment. Almost 70 percent of respondents thought this would help better manage debt. When it came to savings, 37 percent named it as a top financial concern, and 30 percent thought that paying off debt was tops. This was followed by investments/retirement (18%), spending too much money (16%), financing kids’ education (16%) and buying a house (13%).
The survey, conducted March 12–16, 2010, compiled responses from 296 randomly selected consumers in the 18-40 years age bracket.
About moneyStrands (http://www.moneyStrands.com)
moneyStrands, is an innovative, easy-to-use online personal finance service. It automatically gathers data for financial accounts including savings, checking, loans and credit cards, providing users with an up-to-date, accurate, unified view of their finances. moneyStrands goes beyond providing financial analysis tools, with personalized money-saving advice and recommendations, and lets people anonymously compare themselves with people with similar backgrounds and financial goals. moneyStrands is also accessible on the go via a mobile website and native iPhone application. The application supports 44 currencies and is available in both English and Spanish. moneyStrands is free and can be found at http://www.moneystrands.com.
Connect with moneyStrands online by becoming a fan on Facebook (http://www.facebook.com/moneyStrands), following moneyStrands on Twitter (http://www.twitter.com/moneyStrands) or subscribing to the moneyStrands blog (http://www.moneyStrands.com/blog).