NEW YORK—Americans are becoming more satisfied with their credit cards, a major industry survey found on Thursday, especially after new disclosure laws came into effect earlier this year.
JD Power & Associates found that in 2010, more consumers are satisfied with their credit cards than last year, coinciding with recently passed legislation—the Credit Card Accountability, Responsibility and Disclosure Act (CARD).
CARD is intended to simplify credit card disclosures and protects borrowers from exorbitant fees, rate hikes, and phantom charges. JD Power’s customer satisfaction index ticked up 9 points in 2010, to 714 from 705 in 2009.
“The increase in overall satisfaction from 2009 is driven primarily by improvements in satisfaction with credit card terms and billing and payment process,” said JD Power. “The largest increase in satisfaction with credit card terms is among revolvers, or customers who typically carry account balances from month to month.”
The CARD Act, on the whole, helps those who carry monthly balances as it forces credit card companies to make further disclosures and warn in advance about rate hikes and credit card terms.
American Express No. 1
American Express Co.’s credit cards came in at No. 1 in customer satisfaction, according to JD Power, for the fourth consecutive year.
American Express scored an average of 769 points, or 55 points above the industry norm, due to its “exceptional rewards and benefits offerings,” according to JD Power.
Discover Card came in second place. The poll measures customer satisfaction in six categories, including interaction, credit card terms, billing and payment process, benefits and services, rewards, and problem resolution.
HSBC came in last place among all credit card issuers on the survey, followed by Citi Cards and Capital One Bank.