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Credit Card Applications » News » Other » Credit card consumers lack loyalty

Credit card consumers lack loyalty

September 24, 2010
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It is apparent that most consumers loves to detest credit card companies but some of the companies are more disliked than others and the overall scenario of the industry is bleak as there is a public distrust visible towards them.

These facts came from the fourth yearly survey done by J.D. Power and Associates. The firm has done this survey of customer satisfaction from eleven credit card companies and found out that Discover Card, American Express and U.S. Bank did better than average but Citi Cards, HSBC and Capital One did not do well.

According to J.D. Power consumers are not showing loyalty to the credit card companies as they are not sure whether the companies are issuing cards focused on the best interests of customers. The satisfaction level of consumers went up a bit from the year 2009.

The overall satisfaction level saw a minor improvement and went up to seven hundred and fourteen from seven hundred and five of the last year. Moreover the percentages of customers who do not want to switch their credit cards within one year time have fallen down. It has come down to Twenty Two percent from the figure of Thirty percent of 2008 and Twenty Five percent of 2009.

One can aptly say that Seventy Eight percent of consumers might switch their credit cards but they are apprehensive about the problems they might face undergoing the process.

It might sound silly to ask why customers are so hassled with card companies Washington has pointed out that the reason might be that the fees imposed by the card companies often becomes difficult for the consumers to fathom.

J.D. Power Web Intelligence Division had come up with some interesting findings based on online conversations of consumers. According to the survey firm several of the consumers look at their relationship with credit card companies as a game where each side tries hard to outsmart the other.

It also became apparent from social media discussion that several customers are cynical about CARD Act disclosures.

The CARD Act was passed in the last year and it strictly restricts some of the most unpopular practices in the kind of charging increase rates on balances which cumulated under lower and older rates.

The Act also asked for better disclosure of things like pointing out to consumers the duration of time for retiring a debt with minimum number of payments. But according to the survey consumers are not very conversant with card terms.

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