A staggering three in four customers are being refused access to free laptop deals after failing credit checks, a study by website Broadband Experts has found.
During October and November, Broadband Experts witnessed on average half of connections being refused after a credit check was run, with one network turning down three quarters of all applicants.
It found that there had been a major upswing in interest in the deal in the run up to Christmas. However, that has coincided with the global credit crisis being to have a real impact on retailers and customers, resulting in those offering the deals tightening the credit requirements.
"Companies are spending huge amounts on advertising campaigns promoting these offers yet when the consumer comes to sign up, there is a strong chance they will be refused based on a credit check," believes Broadband Expert's commercial director Rob Webber.
The fact that many of those applying for the deals are students and those on a low-income – precisely the demographic that often can't afford the cost of a laptop up front – makes matters worse, adds Webber. The problem he believes is that "these are the people most likely to be excluded from these offers".
The difference between rejection rates he believe: "demonstrate a different strategy with some companies prepared to take a more of a gamble to fill their order books and others choosing to play it safe by only targeting better off consumers they perceive as being low risk."
Source: Retail Bulletin