BIZ BUZZ: Credit card complaints rising

The country’s credit card industry is now paying more attention to customer service amid a rise in consumer complaints that urgently need to be tackled.

According to industry data from the 16-member Credit Card Association of the Philippines (CCAP), credit card-related complaints filed by consumers rose by 45 percent quarter-on-quarter in the three months ending in June. This accounted for 23.65 percent of total consumer complaints received in the second quarter of the year, CCAP figures showed.

Broken down, the industry group said the top three credit card-related complaints were account management; interest rate, fees and charges; and unauthorized online transactions.

Of the three, the share of account management concerns to total consumer complaints went up to 55.5 percent, significantly contributing to the overall rise in customer grievances.

Account management includes complaints from customers encountering difficulties in accessing their accounts or having difficulties with card applications, activation and cancellation processes.

And at CCAP, members are working on “improvements” meant to enhance customer satisfaction and provide greater clarity in credit card management.

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“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 CCAP.

“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 added.