September 2, 2009
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News: Customer Satisfaction Failing
A great deal of animosity has been displayed toward the credit card industry over the past two years. We have all read the testimonies from cardholders telling how their lender has unfairly slashed credit limits or without provocation, raised their interest rate. The third annual Credit Card Satisfaction Study conducted by J.D. Power and Associates confirmed that cardholders' satisfaction with their credit card company has fallen below the passing grade. However, one lender ranked an index score of 762 out of a possible 1,000 points and ranked the highest for a third year in a row. American Express ranked second with an index score of 751, and National City closely behind with a 740.
Overall customer satisfaction with credit card companies fell to a 703 index score; barely a passing score. The greatest dissatisfaction lies with how lenders have handled fees and rates. Overall the financial industry scored a failing 603 points. The percentage of cardholders that experienced an interest rate increase over the past year nearly doubled. Late payment fees were also a major source of dissatisfaction with 14% of the respondents compared to 11% last year. On the other end of the spectrum, those credit card companies that did not perform well were GE Money, Credit One Bank, and First Premier Bank.
The higher performing credit card companies appeared to have one thing in common; good communication skills. Lenders experienced as much as 97 points higher in the interest rate category when they notified cardholders within a reasonable amount of time. Customer interaction also ranks high with cardholders. Discover performed very well in this category due to its highly rated web site, automated phone service, and efficient customer service representatives. The study also demonstrates the role cardholders play in satisfaction. Cardholders who take a more active role in becoming familiar with their card’s benefits and services, experience greater satisfaction with their lender.