A report now shows people are not happy with their banks after complaints skyrocketed in the credit card and accounts department.
The Consumer Financial Protection Bureau received 70,000 complaints about credit cards last year, the most for any payment method, and a 38% increase from the year before, according to a report last week from the agency.
Checking and saving accounts garnered 64,500 complaints last year, a 33% increase from the year before, the report said.
And about 80% of those complaints were with checking accounts specifically.
Consumers complained to the CFPB that “credit cards were fraudulently opened in their names,” the report said.
And complaints about checking or savings accounts often included transactions connected to peer-to-peer payment platforms.
The CFPB reported that nearly 80% of the consumer complaints it received last year had to do with credit reports, including those provided by the three largest providers of such information, Equifax, Experian and TransUnion.
The bureau also found that fraud was a common concern for consumers for nearly every kind of financial product.
When it came to credit cards, the leading type of all card-related complaints at 23% was about inaccurate or unauthorized charges on a consumer’s statement.
Those charges were related to fraudulent activity, as well as disputes with merchants, the report said.
The CFPB did not immediately respond to questions about how many complaints were related to fraud and how many were related to merchant disputes.
In addition to complaints about charges, consumers also complained about not receiving credit card rewards and promotional benefits.
Once the bureau raised the issue on behalf of consumers, “companies sometimes responded by providing consumers with expected rewards or promotions and in some cases apologies for delays,” the report said.
But the bureau does not appear to be satisfied with card companies’ management of rewards programs overall, according to Daniel Perlin, a managing director at Royal Bank of Canada Capital Markets.
Perlin cited a Reuters news report indicating the CFPB plans to examine the card rewards market because of a rise in complaints, with the agency “particularly interested in products aimed at affluent clients.”
He pointed to CFPB concern over the loyalty programs hiding information and mischaracterizing point schemes.
The CFPB has announced that it plans to launch a credit card comparison tool.
The agency has said that some card issuers employ “bait-and-switch” tactics with rewards programs.
Unfortunately, the bureau did not immediately respond to questions about whether it would take additional action against card companies that it believed were misleading consumers about rewards, reports Banking Dive.
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A bank customer now goes into debt after a misleading offer involving a $200 bonus after spending $1,000 failed.
A Bank of America client is seething after they felt misled by the bank they did business with for 16 years.
The user vented on Reddit, explaining how they had been banking with Bank of America for half their life.
“Bank of America will not take care of you,” they wrote.
They said they took out their first credit card by signing up with a representative who said they’d get a financial perk.
They were told the credit card had a $200 bonus cash promotion if they spent $1,000 within 90 days of opening the account.
“I was made to pay a $100 security deposit to open the line of credit,” they said.
They weren’t informed this changed the card and the offer they were eligible for, reports The US Sun.
The user said they struggled to spend all that money in such a tight time window.
Still, they were committed to getting the reward.
“I’ve worked my butt off taking extra shifts so that I could afford a little extra spending — building my credit and working towards that sweet sweet bonus cash,” they wrote.
They said the extra cash was vital since they were preparing to move into their first apartment.
The customer called Bank of America twice to confirm they met the obligations to earn their reward.
They said they were disconnected on the first call, but only after waiting about 30 minutes.
“When I finally got someone on the second try, I was immediately told they didn’t see any promotions on my card/account,” they said.
The user discovered they were misinformed about the credit card they signed up for when they started the process.
They had registered for a secured card which wasn’t eligible for the $200 promotion.
“Also, the deposit listed on the new webpage was different from what I was made to pay,” they wrote.
“So another discrepancy on Bank of America’s part.”
The user asked if they could get direct credit to their account, but the representative said this wasn’t possible.
They were frustrated since the bank responded to the mishap by saying, “Sorry for the misinformation.”
“Time to look into another bank or credit union,” the user wrote.
Social media users posted their thoughts on the thread.
“There is no more loyalty in business,” one Redditor replied.
“A giant global bank doesn’t give a cr*p about one consumer account?” another user asked.
“I am shocked. Shocked! Well, not that shocked. Find a local bank or credit union.”
“Bank of America should be avoided like a filthy public toilet in a train station,” one person added.
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