Credit card complaints 45% more in 2nd quarter

Credit card complaints are on the rise likely as a result of an increasingly cashless society.

The Credit Card Association of the Philippines (CCAP) vowed better customer service as the number of complaints on card activation, rewards and payments drove the total number of all complaints by 45 percent higher in the second quarter of the year compared to the first quarter.

CCAP shared credit card complaints increased to 4,161 which accounted for 23.65 percent of all complaints across the banks’ range of businesses.

Compared to the second quarter of 2023, the share of card management-related complaints expanded to 55.5 percent from 37.2 percent. The top three credit card-related complaints are account management; interest rates, fees, and charges; and unauthorized online transactions.

Active consumer engagement

Other complaints included long processes in card application, activation and cancelation, and delays in card delivery, updating of accounts and viewing of latest transactions or payments.

“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,” CCAP executive director Alex Ilagan said.

“Paying more attention to customer needs is a positive commitment of our member-card issuers. 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 is composed of 16 members from the country’s biggest banks, multinational banks and a non-bank lender.

Over 13 million cards have been released nationwide by CCAP members to over 64 percent of the country’s population amid their association’s continuous literacy projects on the benefits of owning credit cards and ways to protect their accounts from cyber threats.

Recently, CCAP launched a social media campaign to explain credit card terms and policies using Facebook, Instagram, TikTok, and YouTube.

“CCAP continues to pursue educational programs, digital innovations and customer-centric policies that help consumers navigate the credit card landscape with greater ease,” it said.