Credit card complaints in major markets such as the United States and the United Kingdom have reached an all-time high as consumers express dissatisfaction with credit limits and interest rates.
Such is not the case in the Philippines, where credit card users pay more attention to customer service, said the Credit Card Association of the Philippines (CCAP).
“Most consumer complaints are related to credit card management and customer service, which underscore the need for the industry to pay closer attention to consumer feedback,” said Alex Ilagan, executive director of the 16-member industry association.
According to the latest available industry figures CCAP obtained, there were 4,161 credit card-related complaints in the second quarter of 2024. This accounted for 23.65% of the total volume of consumer complaints received.
The top three credit card-related complaints are account management; interest rate, fees, and charges; and unauthorised online transactions.
Complaints on account management resulted in a 45% increase in the total number of credit card-related complaints received compared to the previous quarter. Compared with the same quarter a year ago, the share of account management to total complaints grew to 55.5% in the second quarter of 2024 versus 37.2% in the same quarter in 2023.
Account management includes complaints from customers encountering difficulties accessing their accounts, card applications, card activation and cancellation processes, non-delivery or delay in the delivery of the cards or billing statements, as well as the release of rebates, promotions, and rewards. It also includes challenges in updating account or client information, and unposted transactions or payments.
“Paying more attention to customer needs is a positive commitment of our member-card issuers. While there are always opportunities for improvement, most of the feedback we receive is about credit card management and customer service. An increasing number of consumers are engaging with their credit card issuers to seek better support in managing their accounts, reflecting a growing awareness of credit management,” Ilagan said.
CCAP continues to work closely with its members to ensure smoother customer experiences by refining processes such as card applications, card activation, billing management, and the release of rewards and rebates. These improvements aim to enhance customer satisfaction and provide greater clarity in credit card management.
On August 5, 2024, CCAP signed a contract with Bangko Sentral ng Pilipinas (BSP) to launch Innovative Financial Education Programs. CCAP and BSP are currently working together to develop a credit card e-learning course and create learning resources that will be made publicly accessible through the BSP E-Learning Academy (BELA)—an online platform offering courses on personal finance, economics, and central banking. BELA is expected to be fully accessible to the public by the second quarter of 2025, according to BSP.
“We at CCAP will continue to serve as the bridge between consumers and the financial industry, ensuring a balance between customer needs and market realities,” Ilagan said.
CCAP emphasised that its members’ commitment to consumer protection, financial inclusion, and superior customer service remains strong.
“This is why CCAP continues to pursue educational programs, digital innovations, and customer-centric policies that help consumers navigate the credit card landscape with greater ease,” Ilagan added.
In line with this, CCAP’s ongoing campaign aims to simplify credit card terminologies, helping cardholders make informed financial decisions. The campaign utilises engaging content across CCAP’s social media platforms like Facebook, Instagram, TikTok, and YouTube. – Malaya Business Insight
