Consumer Reports Poll: Consumers Angry at Credit Card Companies; Citing Unfair Treatment When Closing Accounts

Consumer Reports Poll: Consumers Angry at Credit Card Companies; Citing Unfair
Treatment When Closing Accounts

Forty-Five percent of consumers say they are paying less with credit than a
year ago.

YONKERS, N.Y., Oct. 5 /PRNewswire-USNewswire/ -- Credit card holders are
angry. More than a one-third (32%) have paid off and closed a card since
January 2008, and half of those that canceled did so in direct response to
the actions of credit-card issuers, such as cutting limits, hiking rates, or
imposing fees, according to a national poll by Consumer Reports.

Twenty-one percent of respondents said they were treated unfairly by card
companies, and only 41 percent said they were highly satisfied with their card
issuer, making credit cards one of the lowest-rated services that Consumer
Reports covers.

The level of public anger about card issuers shows in the results of Consumer
Reports nationally representative survey of 1,211 credit card users, conducted
in July, as well as in scores of irate letters and e-mails Consumer Reports
has received from readers.

The survey also found that 45 percent of respondents say they are charging
less, 43 percent say they are spending about the same, and 11 percent are
charging more than they did a year ago.

The surveys found that one-third of Americans say they don't own a credit
card. Of those Americans who use them, here's how much money they owe:

-- 54% pay their balances in full each month
-- 13% carry balances over $10,000 (Median $17,366)

-- 33% carry balances up to $10,000 (Median $2,554)

Consumer Reports survey showed credit-card users tended to fall into three
camps. One group is made up of consumers who generally pay their bills on time
but use cards for convenience or to rack up rewards. Then there are those who
reported moderate balances and reasonable prospects of eventually paying off
that debt. The third group includes consumers with debts totaling $10,000 or
more, often from spending for emergencies; 44 percent of that group said they
wouldn't be able to survive financially over the next six months without
relying on their credit cards to meet monthly expenses.

Depending on which camp your credit needs fall into, Consumer Reports'
November report offers a complete strategy guide to dealing with credit-card
issues, finding the right cards for your needs, and protecting your credit
score. The report is available at www.ConsumerReports.org or in the November
issue.

Where to Look For Good Cards:
Finding a good credit card can take a bit of work. Check for deals that are
offered through CardRatings.com, FatWallet.com, and other Internet sites.
Those sites sometimes have a direct link to an offer not generally available
or a coupon that will get consumers a special rate.

-- Credit-union cards. Joining a group can make consumers eligible for
some
good credit-union cards. PenFed, the Pentagon Federal Credit Union's
card is available to members of the National Military Family
Association, which anyone can join for $20. Employers might provide
access to a credit union. Cards issued by the Addison Avenue Federal
Credit Union carry APRs as low as 5.24 percent for employees of
Hewlett-Packard, Cisco, Agilent Technologies, and other tech
companies.
The Digital Federal Credit Union offers attractive cards to employees
of
its more than 700 member companies.
-- Association cards. USAA offers rewards cards with interest rates as
low
as 7.75 percent for current and retired military personnel and their
families. The NEA Platinum Plus card, available to teachers who are
members of the National Education Association, offers a 6.24 percent
APR
and 0 percent on balance transfers for 12 months, with transfer fees
capped at $30.

-- Specialty rewards cards. The TrueEarnings Costco card from American
Express is a good cash-back card if you are a Costco member and pay
off
your balance in full each month. It carries no annual fee and pays
rewards of 1 to 3 percent, depending on what you purchase. Despite a
$45
annual fee after the first year, the Starwood Preferred Guest card
from
American Express can be worthwhile if you're a frequent traveler and
you
stay at Starwood hotels.

Consumer Reports experts took a look at many of the available cards. Depending
on your personal credit situation, they suggest you consider the following
options which appear to have good terms and no annual fees:

For balance-transfer cards:
Consider these if you're currently paying high rates on existing balances.
American Express Clear, PenFed Visa Platinum; People's United Bank Platinum
MasterCard

Low-rate cards:
Good for people who regularly carry a balance.
Iberiabank Visa Classic, Simmons First Visa Platinum

Cash-back cards:
Best for cardholders who pay off their balances in full each month
American Express Blue Cash, Capital One No Hassle Cash Rewards, Fidelity
Rewards American Express, Schwab Invest First Visa

For more information on these cards or how to find the best card for your
needs checkout Consumer Reports November report available at
www.ConsumerReports.org or in the November issue on newsstands October 6,
2009.

The Consumer Reports Credit Card Users poll used a nationally representative
sample of 1,211 adults. The survey was conducted via telephone in July, 2009.
The margin of sampling error is +/-2.8% with a 95% confidence level.

NOVEMBER 2009
The material above is intended for legitimate news entities only; it may not
be used for commercial or promotional purposes. Consumer Reports(R) is
published by Consumers Union, an expert, independent nonprofit organization
whose mission is to work for a fair, just, and safe marketplace for all
consumers and to empower consumers to protect themselves. To achieve this
mission, we test, inform, and protect. To maintain our independence and
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SOURCE Consumer Reports

C. Matt Fields of Consumers Union, +1-914-378-2454, cfields@consumer.org