Faculty Publications


Evaluating the efficacy of credit card regulation.

SelectedWorks Author Profiles:

Karin Braunsberger

Document Type


Publication Date


Date Issued

January 2005

Date Available

May 2013




Purpose – In the USA, the Federal Reserve Board (FRB) has adopted a final rule amending the Truth in Lending Act’s Regulation Z, effective October 1, 2001. The present study aims to use the elaboration likelihood model to explore how consumers might respond to the revised credit card disclosure requirements, focusing specifically on college students. Design/methodology/approach – Each subject was randomly assigned to one of two financial scenarios and asked to choose, among competing offers, the credit card that presented the “best” match to the scenario. Subsequently, all subjects completed measures designed to test hypothesized relationships within the framework of the elaboration likelihood model. Findings – College students possess a fairly low level of knowledge of credit cards and thus are not very well equipped to make educated choices concerning such cards. Research limitations/implications – The use of a rural student sample is a limitation and future research should investigate different populations, including those in urban and international markets. Practical implications – Since the variable APR information appears to distract consumers from taking into account other important cost information, credit card issuers should develop solicitations that aid consumers in making knowledgeable choices. Originality/value – The present research is the first to investigate the impact of the FRB’s recently adopted final rule amending the Truth in Lending Act’s Regulation Z. The findings should thus be of interest to regulators, credit card issuers, and consumer advocates.


Abstract only. Full-text article is available through licensed access provided by the publisher. Published in International Journal of Bank Marketing, 23(3), 237-254. doi:10.1108/02652320510591702 Members of the USF System may access the full-text of the article through the authenticated link provided.




MCB University Press

Creative Commons License

Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.