An Empirical Research on Consumers' Perceptions of Legal Rights in Credit Usage and Their Level of Knowledge of the Legislation Regarding Credit Utilization

Abstract

Purpose – In this study, the effects of some socio-economic and demographic variables on consumers' perceptions of legal rights in using credit and the level of knowledge of legislation on credit usage were examined. Design/methodology/approach – The research was carried out with a total of 528 participants, 276 men and 252 women, who live in Turkey and have used fixed-rate consumer or housing finance loans in Turkish Lira at least once. In this study, which was carried out using the scanning model, which is one of the quantitative research methods, the perceptions of consumers about legal rights in the use of credit and the level of knowledge of the legislation on the use of credit; evaluated in terms of gender, education and income level. SPSS 26.0 statistical package program is used in the statistical analysis of the obtained data. Findings – According to the results of the research, it was concluded that the positive perceptions of the participants regarding the legal rights in the use of credit were not high, they were at a moderate level, and the level of knowledge of the legislation in general was low. As a result of the study, it has been understood that the level of knowledge of the participants is quite low, even on issues that can be considered as the basic elements of the relevant legislation and that can closely affect consumers in the use of credit and payment process. Discussion – There has been an increase in the use of consumer loans in Turkey, especially in recent years. In this process, consumers who are not aware of their legal rights may make irrational choices, and in this case, they may eventually affect consumers' perceptions of legal rights in the use of credit.