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Article Excerpt
This study represents an exploratory investigation of credit card knowledge among one vulnerable consumer segment--the developmentally disabled. The results suggest that many of the individuals did not understand the complexity of credit card products and were not able to make reasoned assessments of financial concepts and credit terms.
A little knowledge (learning) is a dangerous thing.
--Alexander Pope, 1709
Shopping and making purchases are common activities of everyday life (Baker 2006). Cash and checks are no longer the preferred form of payment for these purchases, as the majority of transactions are accomplished through plastic--either debit or credit cards (Borzekowski, Kiser, and Ahmed 2006). Over the past decade, the use of credit cards, in particular, has become an area of social and economic concern. Worried about the problems created by credit card ownership, especially among vulnerable groups (i.e., students, seniors, and disabled citizens), consumer advocates, public policy officials, and legislators often consider setting boundaries for credit card marketers (Braunsberger, Lucas, and Roach 2004; Brenkert 1998).
Consumer vulnerability has been defined in various ways; however, attaining consensus on a definition is difficult due to its complexity. Most authors agree that while no one chooses to be classified as vulnerable, all consumers can expect to be vulnerable at some point in their lives. From a time perspective, vulnerability may be either a temporary (situational) or a permanent (enduring) condition (Brenkert 1998; Gentry et al. 1995; Walsh 1996). Baker, Gentry, and Rittenburg (2005) define vulnerability as "a short-run phenomenon that does not become an equilibrium state" (136). These authors contend that for the majority of consumers, vulnerability is typically temporary because consumers ultimately develop coping mechanisms to deal with their circumstances. Situations contributing to consumer vulnerability include death of a loved one (Gentry et al. 1995), divorce (McAlexander, Schouten, and Roberts 1993), or lack of access to technology (Hogg, Howells, and Milman 2007). Situationally vulnerable consumers are at risk for a limited period of time, and when that period ends, they are otherwise assumed to be competent in the marketplace.
At the other end of the spectrum are individuals with enduring vulnerability or vulnerability of a more permanent nature. Such consumers have been characterized in the following ways: (1) unable to navigate the general marketplace (Ringold 2005), (2) having diminished access to goods (Hill and Stephens 1997), (3) being physically vulnerable (Kaufman-Scarborough and Baker 2005), or (4) unable to adequately understand fraudulent claims (Lee and Soberon-Ferrer 1997) or advertising messages (Ringold 1995). Consumers who have limited literacy skills are also assumed to have greater potential for vulnerability (Adkins and Ozanne 2005).
In this article, the concept of consumer vulnerability is applied to developmentally disabled individuals, a segment of the population who are cognitively impaired and therefore experience enduring vulnerability (Brenkert 1998). These consumers experience chronic physical or mental impairments and have extreme difficulty with everyday tasks such as learning, understanding, and independent living (Centers for Disease Control and Prevention 2004). In addition, these incapacities impede their abilities to participate in normal market activities (Brenkert 1998). This group of consumers also lacks the competency and control identified by Baker (2006) necessary for consumer normalcy.
According to the Developmental Disabilities Assistance and Bill of Rights Act Amendments of 1987 (P.L. 100-146), a developmental disability is defined as "a severe, chronic condition which:
1. is attributable to a mental or a physical impairment or a combination of mental or physical impairment;
2. is manifested before the person attains age twenty two;
3. is likely to continue indefinitely;
4. results in substantial functional limitations in three or more of the following areas of major life activity:
a. self-care,
b. receptive and expressive language,
c. learning,
d. mobility,
e. self-direction,
f. capacity for independent living, and
g. economic self-sufficiency; and
5. reflects the person's need for a combination and sequence of special, interdisciplinary, or generic care; treatment; or other services that are of lifelong or extended duration and are individually planned or coordinated" (U.S. Department of Health and Human Services 2003).
As of the latest census, more than 12.4 million Americans are mentally or developmentally disabled (U.S. Census Bureau 2003). In the 1970s, the Disabilities Education Act (Public Act 142, 1970) began a movement of deinstitutionalization of these individuals when the trend turned toward community-based services for their education and residential care. In a personal interview with Dr. Maureen B. Carey, she stated that many of these individuals live with family members, in some form of assisted care such as a group home or in their own homes with minimal supervision (2007). They are given a wider range of choices regarding their day-to-day lives, such as what type of employment or vocation to pursue, where to shop, and what to buy. This type of input allows them to participate more independently in normal decisions of daily living; however, it may come with a price.
For mentally disabled individuals living on their own or with minimal supervision, learning to manage their spending is one of the most critical issues they face on a daily basis. One aspect of money management is understanding and use of credit cards....
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