Consumers Grow Increasingly Unsatisfied with Their Credit Card Companies

A recent survey conducted by JD Power and Associates reveals that consumers are growing increasingly more unhappy with their credit card companies. That really isn’t much of a surprise though is it?

In the best of economic times credit card issuers are often looked upon as the bad guys, especially by those cardholders that carry balances. In bad economic times, which we certainly have seen our fair share of, credit card companies really take a beating in the eyes of account holders.

The survey began in 2007 and the satisfaction level is currently at the lowest point since its inception. They use a 1000 point scale (1000 being the best possible score) and currently consumer’s credit satisfaction stands at 703.

The survey finds that approximately 20% of credit card account holders have seen an increase in their interest rates since 2008. That is twice as many consumers that reported an interest rate increase just a year ago.

Not surprisingly those cardholders that carry a balance from month to month are more likely to see their interest rates raised and they of course, were less likely to be satisfied with their current credit card company.

There was also an increase in those that reported that they had to pay a late fee in 2009. 14% reported that they had to pay a late fee as opposed to 11% in 2008.

It wasn’t difficult to find the source of most of the dissatisfaction amongst consumers. It is no secret that credit card issuers are facing profit pressure and are increasing interest rates and penalty fees in advance of the credit card reform law that will go into effect in February 2010.

All indications point to credit card companies continuing to have pressure placed upon them by the growing number of defaults and bankruptcies caused by the recession. Many consumers are also opting to pay down their credit card debt and use debit cards instead of credit cards.

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