Credit Cards 2014 Study
After analyzing the more than 38,000 credit card-related complaints filed with the Consumer Financial Protection Bureau (CFPB), CreditDonkey identified the largest cities where consumers most often and least often quarrel with their credit card issuers.
The CFPB, a federal agency created after the financial crisis of 2007-08, reports that credit card complaints comprise 14% of all issues it has dealt with over the past two years. From November 30, 2011 through August 14, 2014, Americans submitted credit card complaints to the CFPB at an average rate of 12.07 per 100,000 residents. But when CreditDonkey, a credit card comparison and financial education site, dug deeper, the editors found that Americans in certain areas had more complaints than others.
"By focusing on 251 U.S. cities with populations over 100,000, we discovered that 8 of the 10 largest cities with some of the fewest per-capita complaints are in the Southwest, with five in Texas," said CreditDonkey founder Charles Tran. "Meanwhile, 7 of the 10 cities with some of the highest per-capita rates are in the Southeast, with four in Florida."
City | State | Complaint Rate1 | Complain Index2 |
---|---|---|---|
National Average | 12.07 | 100 | |
Anchorage | AK | 7.54 | 62 |
Birmingham | AL | 30.63 | 254 |
Huntsville | AL | 3.89 | 32 |
Mobile | AL | 13.84 | 115 |
Montgomery | AL | 9.72 | 81 |
Little Rock | AR | 10.33 | 86 |
Chandler | AZ | 14.40 | 119 |
Gilbert | AZ | 15.35 | 127 |
Glendale | AZ | 11.91 | 99 |
Mesa | AZ | 12.07 | 100 |
Peoria | AZ | 18.82 | 156 |
Phoenix | AZ | 12.24 | 101 |
Scottsdale | AZ | 43.24 | 358 |
Surprise | AZ | 2.55 | 21 |
Tempe | AZ | 18.55 | 154 |
Tucson | AZ | 19.80 | 164 |
Anaheim | CA | 8.62 | 71 |
Antioch | CA | 8.79 | 73 |
Bakersfield | CA | 14.68 | 122 |
Berkeley | CA | 27.54 | 228 |
Burbank | CA | 16.45 | 136 |
Carlsbad | CA | 18.99 | 157 |
Chula Vista | CA | 8.20 | 68 |
Concord | CA | 18.02 | 149 |
Corona | CA | 17.72 | 147 |
Costa Mesa | CA | 23.65 | 196 |
Daly City | CA | 16.81 | 139 |
Downey | CA | 10.74 | 89 |
El Monte | CA | 0.88 | 7 |
Elk Grove | CA | 16.34 | 135 |
Escondido | CA | 13.20 | 109 |
Fairfield | CA | 10.44 | 87 |
Fontana | CA | 7.14 | 59 |
Fremont | CA | 17.28 | 143 |
Fresno | CA | 6.67 | 55 |
Fullerton | CA | 9.62 | 80 |
Garden Grove | CA | 7.61 | 63 |
Glendale | CA | 18.26 | 151 |
Hayward | CA | 10.40 | 86 |
Huntington Beach | CA | 16.84 | 140 |
Inglewood | CA | 18.24 | 151 |
Irvine | CA | 24.49 | 203 |
Lancaster | CA | 20.43 | 169 |
Long Beach | CA | 14.71 | 122 |
Los Angeles | CA | 10.73 | 89 |
Modesto | CA | 9.94 | 82 |
Moreno Valley | CA | 7.24 | 60 |
Murrieta | CA | 12.56 | 104 |
Norwalk | CA | 8.53 | 71 |
Oakland | CA | 18.94 | 157 |
Oceanside | CA | 13.77 | 114 |
Ontario | CA | 11.59 | 96 |
Orange | CA | 8.80 | 73 |
Oxnard | CA | 5.56 | 46 |
Palmdale | CA | 7.86 | 65 |
Pasadena | CA | 19.69 | 163 |
Pomona | CA | 14.76 | 122 |
Rancho Cucamonga | CA | 15.13 | 125 |
Richmond | CA | 8.68 | 72 |
Riverside | CA | 11.85 | 98 |
Roseville | CA | 15.99 | 133 |
Sacramento | CA | 21.65 | 179 |
Salinas | CA | 9.31 | 77 |
San Bernardino | CA | 9.05 | 75 |
San Diego | CA | 17.21 | 143 |
San Francisco | CA | 22.85 | 189 |
San Jose | CA | 12.26 | 102 |
Santa Ana | CA | 8.01 | 66 |
Santa Clara | CA | 19.75 | 164 |
Santa Clarita | CA | 2.27 | 19 |
Santa Rosa | CA | 10.13 | 84 |
Simi Valley | CA | 24.95 | 207 |
Stockton | CA | 8.57 | 71 |
Sunnyvale | CA | 14.99 | 124 |
Temecula | CA | 18.98 | 157 |
Thousand Oaks | CA | 19.73 | 163 |
Torrance | CA | 13.06 | 108 |
Vallejo | CA | 10.35 | 86 |
Victorville | CA | 8.63 | 71 |
Visalia | CA | 6.43 | 53 |
West Covina | CA | 17.91 | 148 |
Arvada | CO | 18.79 | 156 |
Aurora | CO | 20.00 | 166 |
Colorado Springs | CO | 19.69 | 163 |
Denver | CO | 26.99 | 224 |
Fort Collins | CO | 11.81 | 98 |
Pueblo | CO | 10.32 | 85 |
Westminster | CO | 7.54 | 62 |
Bridgeport | CT | 4.16 | 34 |
Hartford | CT | 12.02 | 100 |
New Haven | CT | 12.33 | 102 |
Stamford | CT | 15.49 | 128 |
Waterbury | CT | 28.99 | 240 |
Washington | DC | 37.56 | 311 |
Cape Coral | FL | 12.96 | 107 |
Clearwater | FL | 28.79 | 239 |
Fort Lauderdale | FL | 166.75 | 1381 |
Gainesville | FL | 24.12 | 200 |
Hialeah | FL | 7.57 | 63 |
Hollywood | FL | 79.56 | 659 |
Jacksonville | FL | 13.63 | 113 |
Miami | FL | 65.84 | 545 |
Orlando | FL | 65.46 | 542 |
Palm Bay | FL | 13.57 | 112 |
Pembroke Pines | FL | 0.65 | 5 |
Tallahassee | FL | 25.36 | 210 |
Tampa | FL | 34.26 | 284 |
Atlanta | GA | 40.95 | 339 |
Columbus | GA | 8.95 | 74 |
Savannah | GA | 24.95 | 207 |
Cedar Rapids | IA | 8.71 | 72 |
Des Moines | IA | 12.29 | 102 |
Aurora | IL | 8.08 | 67 |
Chicago | IL | 13.50 | 112 |
Elgin | IL | 8.32 | 69 |
Joliet | IL | 4.75 | 39 |
Naperville | IL | 18.33 | 152 |
Peoria | IL | 2.61 | 22 |
Rockford | IL | 6.54 | 54 |
Springfield | IL | 24.09 | 200 |
Evansville | IN | 11.07 | 92 |
Fort Wayne | IN | 6.70 | 56 |
South Bend | IN | 7.91 | 66 |
Kansas City | KS | 7.55 | 63 |
Olathe | KS | 12.71 | 105 |
Overland Park | KS | 17.30 | 143 |
Topeka | KS | 14.12 | 117 |
Wichita | KS | 8.63 | 72 |
Baton Rouge | LA | 17.87 | 148 |
Lafayette | LA | 3.32 | 27 |
New Orleans | LA | 11.34 | 94 |
Shreveport | LA | 6.02 | 50 |
Boston | MA | 9.23 | 76 |
Cambridge | MA | 25.67 | 213 |
Lowell | MA | 5.63 | 47 |
Springfield | MA | 8.49 | 70 |
Worcester | MA | 12.15 | 101 |
Baltimore | MD | 20.29 | 168 |
Ann Arbor | MI | 21.06 | 175 |
Detroit | MI | 7.99 | 66 |
Flint | MI | 6.83 | 57 |
Grand Rapids | MI | 18.61 | 154 |
Lansing | MI | 13.12 | 109 |
Sterling Heights | MI | 11.57 | 96 |
Warren | MI | 11.19 | 93 |
Minneapolis | MN | 33.72 | 279 |
Rochester | MN | 11.24 | 93 |
Columbia | MO | 8.29 | 69 |
Independence | MO | 12.84 | 106 |
Kansas City | MO | 12.83 | 106 |
Springfield | MO | 5.64 | 47 |
Jackson | MS | 2.88 | 24 |
Billings | MT | 7.68 | 64 |
Cary | NC | 22.92 | 190 |
Charlotte | NC | 21.19 | 176 |
Durham | NC | 16.64 | 138 |
Fayetteville | NC | 14.96 | 124 |
Greensboro | NC | 15.20 | 126 |
High Point | NC | 6.71 | 56 |
Raleigh | NC | 17.58 | 146 |
Wilmington | NC | 23.48 | 195 |
Fargo | ND | 6.63 | 55 |
Lincoln | NE | 10.06 | 83 |
Omaha | NE | 14.67 | 122 |
Manchester | NH | 9.13 | 76 |
Elizabeth | NJ | 10.40 | 86 |
Jersey City | NJ | 20.60 | 171 |
Newark | NJ | 11.19 | 93 |
Paterson | NJ | 4.10 | 34 |
Albuquerque | NM | 12.46 | 103 |
Las Vegas | NV | 39.91 | 331 |
Reno | NV | 14.65 | 121 |
Buffalo | NY | 37.50 | 311 |
New York | NY | 7.72 | 64 |
Rochester | NY | 29.92 | 248 |
Syracuse | NY | 21.35 | 177 |
Yonkers | NY | 20.92 | 173 |
Akron | OH | 15.07 | 125 |
Cincinnati | OH | 33.34 | 276 |
Cleveland | OH | 28.22 | 234 |
Columbus | OH | 18.68 | 155 |
Dayton | OH | 59.35 | 492 |
Toledo | OH | 9.40 | 78 |
Norman | OK | 6.31 | 52 |
Oklahoma City | OK | 11.72 | 97 |
Tulsa | OK | 8.42 | 70 |
Eugene | OR | 14.09 | 117 |
Gresham | OR | 8.52 | 71 |
Portland | OR | 21.07 | 175 |
Salem | OR | 14.23 | 118 |
Allentown | PA | 11.86 | 98 |
Erie | PA | 15.72 | 130 |
Philadelphia | PA | 12.12 | 100 |
Pittsburgh | PA | 30.75 | 255 |
Providence | RI | 16.29 | 135 |
Charleston | SC | 13.32 | 110 |
Columbia | SC | 24.75 | 205 |
Sioux Falls | SD | 17.55 | 145 |
Chattanooga | TN | 10.14 | 84 |
Clarksville | TN | 6.77 | 56 |
Knoxville | TN | 21.24 | 176 |
Memphis | TN | 9.89 | 82 |
Murfreesboro | TN | 13.79 | 114 |
Abilene | TX | 4.27 | 35 |
Amarillo | TX | 2.62 | 22 |
Arlington | TX | 13.96 | 116 |
Austin | TX | 17.08 | 142 |
Beaumont | TX | 3.38 | 28 |
Brownsville | TX | 1.14 | 9 |
Carrollton | TX | 16.79 | 139 |
Corpus Christi | TX | 7.86 | 65 |
Dallas | TX | 15.53 | 129 |
Denton | TX | 12.35 | 102 |
El Paso | TX | 5.08 | 42 |
Fort Worth | TX | 14.03 | 116 |
Frisco | TX | 15.39 | 127 |
Garland | TX | 11.02 | 91 |
Grand Prairie | TX | 12.54 | 104 |
Houston | TX | 13.86 | 115 |
Irving | TX | 18.96 | 157 |
Killeen | TX | 10.94 | 91 |
Laredo | TX | 5.51 | 46 |
Lubbock | TX | 5.23 | 43 |
McAllen | TX | 6.93 | 57 |
McKinney | TX | 13.73 | 114 |
Mesquite | TX | 12.16 | 101 |
Midland | TX | 6.30 | 52 |
Pasadena | TX | 2.01 | 17 |
Plano | TX | 24.25 | 201 |
San Antonio | TX | 13.41 | 111 |
Waco | TX | 2.40 | 20 |
Wichita Falls | TX | 0.96 | 8 |
Provo | UT | 3.56 | 29 |
Salt Lake City | UT | 30.04 | 249 |
West Jordan | UT | 9.64 | 80 |
Alexandria | VA | 73.59 | 610 |
Chesapeake | VA | 9.90 | 82 |
Hampton | VA | 8.73 | 72 |
Newport News | VA | 7.75 | 64 |
Norfolk | VA | 7.41 | 61 |
Richmond | VA | 41.62 | 345 |
Virginia Beach | VA | 12.79 | 106 |
Bellevue | WA | 19.61 | 163 |
Everett | WA | 10.68 | 88 |
Seattle | WA | 22.67 | 188 |
Spokane | WA | 11.49 | 95 |
Tacoma | WA | 12.60 | 104 |
Vancouver | WA | 21.01 | 174 |
Green Bay | WI | 23.06 | 191 |
Madison | WI | 18.01 | 149 |
Milwaukee | WI | 15.30 | 127 |
Bar graph not to scale beyond double the national average
1 Estimated # of Complaints Per 100,000 Residents
2 Compared to the National Average (100 being average)
The CFPB website is a useful resource that can help cardholders resolve problems that undoubtedly rear their ugly heads from time to time. Part of its database includes the credit card agreements of over 300 card issuers. While you might very well have tossed that little pamphlet when it came with your shiny piece of plastic, you can access that fine print via the CFPB website with just a few clicks. Then, if you still can't resolve an issue on your own, the CFPB will help you submit a complaint to the credit card company to assist in getting your problem resolved.
Most credit card-related complaints concern billing disputes, identity theft, and interest rates. Cynthia Cohen with CreditDonkey shares some tips below on how to deal with these unfortunate circumstances and others when they arise, how to prevent them, and what to do about them.
BILLING DISPUTES
By far, the most common complaint on the CFPB website is billing disputes, which can really knock you for a loop. For instance, you scrutinize your monthly statement and see that you were charged more than your receipt shows, you were charged twice, you can't get rid of an ongoing charge, you returned merchandise and were never credited for it, or you never authorized the charge at all. These are just some of the possibilities that will raise the hairs on your neck if you have a billing dispute.
Oftentimes, a mere call to the card issuer will set an investigation in motion, and the charge will be removed or dealt with accordingly. The charge will often remain on your account until the investigation is complete, and you will be notified of the results of the issuer’s findings. Of course, that doesn't necessarily mean you agree with them, and you might have to go a step further and file a complaint if the dispute is not resolved in your favor. Also be aware, you usually have a fixed amount of time to file a complaint, so timeliness is also very important on your part.
How to Prevent/Resolve a Billing Dispute
- Check your credit card statement regularly
- If appropriate, contact the merchant to correct the problem
- Call the card issuer with your concerns
- Wait an appropriate amount of time for the response
- File a complaint if the issue isn't resolved
When possible, file your requests in writing so that you have documented proof.
IDENTITY THEFT
If you've been the unfortunate victim of identity theft, you know how this issue can either be an unending thorn in your side or quickly resolved by your credit card company. It can range from someone making thousands of dollars of unauthorized purchases using your card or just a single small charge that you know you didn't make. Oftentimes, if it's the latter, a simple call to your credit card company will resolve the issue, and you will not be responsible for the charges. In fact, most major credit card companies offer just that as a benefit — they automatically provide you with zero liability for unauthorized, fraudulent charges that hit your account.
However, if you're having difficulty with your credit card company in removing the charge, it’s fair to contact the CFPB to make a complaint.
Just know that it's prudent that you always check your credit card statements thoroughly to make sure that you incurred all the charges listed, and keep yourself well informed on how to prevent identity theft from happening to you.
How to Prevent/Resolve Credit Card Identity Theft
- Check your credit card statement each month
- Don't leave your card stored online on any website
- Contact the credit card issuer as soon as you see an unauthorized charge
- Monitor your credit report regularly
- File a complaint if the problem isn't resolved
INTEREST RATES
Some cards offer low or 0% interest on purchases or balance transfers for a fixed period of time, after which the interest rate shoots up. Always be aware of exactly how long your introductory rate lasts and what the APR will be as soon as it's over, so you're not in for any surprises. Credit cards that generally have a low interest rate are worth considering, but they too may change your terms if you miss a payment or as time goes on.
Promotional interest rate offers may cause you to lose the grace period on purchases if you do not pay the entire statement balance (including the amount subject to the promotional APR) by the payment due date. If you plan to carry a balance, contact the credit card issuer to find out about the effects of the promotional APR offers on the grace period for new purchases.
It's important to note that an issuer can change your agreement at any time, and you should be notified of this 45 days in advance. If you're like most people, however, you probably ignore those small-print mailers or emails and get hit with a bit of sticker shock when the new rate kicks in. Even if you haven’t made any purchases lately but you carry a balance, that higher rate will make it harder for you to clear your debt. It may be time to take action.
How to Deal with an Interest Rate Hike
- Read all the fine print
- Don't ignore emails or mailers from your credit issuer
- Call and try to negotiate a lower rate
- Close your account (of course, you'll still have to pay off or transfer the balance)
CLOSING AN ACCOUNT
Naturally, cutting your credit card into pieces or dropping it into your paper shredder does not qualify as a closed account. You have to go through the proper channels and contact the issuer, and even then, you're bound to be bombarded by questions by the customer service rep as to why you no longer want to carry the card. There are many reasons you might consider closing a credit card account: the card issuer just raised the interest rate; you recently realized you still have the card even though you haven't used it in years; or you remembered there's an annual fee and the card issuer won't waive it. It's important to clarify that you can't close an account completely if you still have an outstanding balance, but you can close the account to new purchases.
In any case, if you do have a zero balance, it's not always the best idea to cancel an account because of its potential negative effect on your credit rating. If you have a zero balance on the card and don't use it, it's actually beneficial to keep the card open as it will remain on your credit report indefinitely indicating positive credit history, while a closed account with a positive history will only remain on your credit report for 10 years. Plus, the amount of total credit you have available to you plays a factor in your creditworthiness rating.
How to Close Your Account
- Call your credit card issuer to close your account
- Close off your card to new purchases, then pay off your balance or make a balance transfer
- Send a written letter for assurance
- Remain firm if you're asked to reconsider
- If you're hassled, file a complaint
CREDIT REPORTING
The best way to make sure your credit card company is accurately reporting to the credit bureaus is to monitor your credit reports on a regular basis. That can't be stated enough. If you do, you're bound to catch an error in the early stages, most likely making it easier to correct in the long run.
Let's say you don't pay much attention to your credit reports and you go to buy a car, thinking you have stellar credit. However, you find out your score is much lower than you expected. Ask the salesperson to show you the report so you can assess the situation. You might notice that, even though you've always paid your bills on time, one of your credit cards is reporting that you have one late payment of at least 90 days. This can impact your credit score pretty severely — and yet, you've never made a late payment. Now you're going to have to first fix that problem with the credit card company, which may involve showing proof that you never made late payments. Then, you're going to have to wait for the credit card issuer to investigate the issue, rule in your favor, and finally report it back to the credit bureaus. This is a process that can take months before it finally appears correctly on your credit report.
If you're finding a particular credit card company is continuously reporting erroneous information to the credit bureau, it's time for you to take action.
How to Avoid Credit Report Errors
- Monitor your credit reports on a regular basis
- Contact the credit card issuer to see if the error is an easy fix
- File a complaint if the issue isn't resolved completely or in a timely manner
LATE FEES
If you do happen to make a late payment, prepare to pay for it in cold hard cash. Late fees on credit cards vary and cannot exceed your minimum payment due. However, as a general rule, late fees are usually $25 for your first late payment and as much $35 per second late payment and beyond. If you forgot about your bill and have made just one late payment over a long period of time, you can probably just call the credit card company, and, in good faith, it will remove the charge because you rarely, or have never, made a late payment. Case closed.
However, if you consistently make late payments, these fees can really add up and affect your credit reports — a double whammy that'll really hit you in the financial gut. And a late payment reported to the credit bureaus will remain on your report for seven years before dropping off. But if a credit card company has erroneously reported that you were late on a payment and you have the proof to back up that you weren't, it's time to contact the card issuer.
How to Avoid Late Fees
- Pay your bill on or before the due date
- Set up autopay, either via the credit card website or online banking
- Find a card that doesn't charge late fees
BOTTOM LINE
While there are certainly preventive measures you can take to avoid having a problem with a credit card company, mistakes do happen, and you might find yourself having to contact them. To steer clear of additional hassles, a good rule of thumb is to be courteous when speaking to customer service reps. They're more likely to work hard to assist you if you calmly, but firmly, explain your problem. Nobody wants to deal with an angry consumer, regardless of how "right" you believe you are. If, after this, your issue still isn't resolved to your satisfaction, ask to speak to a supervisor. A last resort could be to submit a complaint with the CFPB.
Study Methodology
City estimates are based on 11,865 complaints about credit cards from customers in cities with at least 100,000 residents. To estimate consumer satisfaction by city, CreditDonkey mapped complaint data from the CFPB by zip code level to the USPS zip code's preferred city. The analysis may not encompass all complaints in any one city. For instance, USPS preferred cities are typically the city or town the address is located in, but in some cases, the actual address can correspond to a different city. For example, a resident in 90210 can be in the city of Beverly Hills or the city of Los Angeles, though the USPS designates Beverly Hills as the 90210's preferred city. For purposes of this study, CreditDonkey assumes residents live in the USPS preferred city. City population estimates are based on the U.S. Census 2010 figures. National population estimates are based on the U.S. Census 2013 estimate.
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