Survey: Mass. Residents Overstate Financial Acumen
A survey conducted by the state Office of Consumer Affairs and Business Regulation found that Massachusetts consumers don’t know as much about financial rules that affect them as they think they do.
A telephone poll found that 91 percent of Bay State residents believe they actively manage their finances, but only 52 percent look at their credit reports once a year. And 36 percent said they never check the reports.
The survey results can be viewed here.
Consumers were also found to be lacking in knowledge about debit card liability. Nearly 75 percent thought they wouldn’t be liable for fraudulent purchases made with their debit cards if they were to notify their banks between two and 60 days after the crime. But actually, consumers can be held liable for up to $500 worth of fraudulent purchases and for the entire amount after 60 days.
Consumers under age 30 fared the worst in the survey, with 60 percent saying they either don’t manage their finances, or manage their finances not too carefully or somewhat carefully.
Senior citizens were found to be the most knowledgeable, but nearly one-third were unfamiliar with reverse mortgages. Sixty-five percent of seniors earning less than $25,000 a year were either not too familiar (11 percent) or not at all familiar (54 percent) with reverse mortgages, which allow the retirement age borrowers to take equity out in their home in the form of cash payments from the lender. The lender recoups the balance when the home is refinanced or sold by heirs.
Image credit: freedigitalphotos.net
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