Consumers Complain of Poor Communication from Credit Card Companies
Earlier this week, the Consumer Financial Protection Bureau (CFPB) released its monthly complaint report, which shows that consumers are upset about the lack of clear information they are receiving from credit card issuers.
The CFPB, which has handled approximately 97,100 complaints as of July 1, 2016, specifically found:
- Consumers do not understand the mechanisms credit card companies are using to determine whether they qualify for a card and, if they do, what interest rate they’ll be charged. Many believe the decisions are based on items on their credit report that do not reflect their current credit worthiness.
- When consumers have more than one balance, they are unclear as to how payments are applied. Consumers complain when payments do not go toward the most time-sensitive balances.
- Many believe that fees and additional costs are not being adequately explained. Consumers complained about being unfairly charged when an automatic payment failed or when they did not receive their credit card statement in a timely manner.
- Many feel misled about reward programs. They complained that the terms and conditions of the programs were not adequately explained before they signed up for their credit card.
“Credit cards are an important tool in the day-to-day financial lives of a large number of consumers,” said CFPB Director Richard Cordray. “It is important that credit card companies are being straightforward and clear about the costs and fees associated with their products so consumers have the information they need to make informed financial decisions.”