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."

CityStateComplaint Rate1Complain Index2
National Average12.07100
AnchorageAK7.5462
BirminghamAL30.63254
HuntsvilleAL3.8932
MobileAL13.84115
MontgomeryAL9.7281
Little RockAR10.3386
ChandlerAZ14.40119
GilbertAZ15.35127
GlendaleAZ11.9199
MesaAZ12.07100
PeoriaAZ18.82156
PhoenixAZ12.24101
ScottsdaleAZ43.24358
SurpriseAZ2.5521
TempeAZ18.55154
TucsonAZ19.80164
AnaheimCA8.6271
AntiochCA8.7973
BakersfieldCA14.68122
BerkeleyCA27.54228
BurbankCA16.45136
CarlsbadCA18.99157
Chula VistaCA8.2068
ConcordCA18.02149
CoronaCA17.72147
Costa MesaCA23.65196
Daly CityCA16.81139
DowneyCA10.7489
El MonteCA0.887
Elk GroveCA16.34135
EscondidoCA13.20109
FairfieldCA10.4487
FontanaCA7.1459
FremontCA17.28143
FresnoCA6.6755
FullertonCA9.6280
Garden GroveCA7.6163
GlendaleCA18.26151
HaywardCA10.4086
Huntington BeachCA16.84140
InglewoodCA18.24151
IrvineCA24.49203
LancasterCA20.43169
Long BeachCA14.71122
Los AngelesCA10.7389
ModestoCA9.9482
Moreno ValleyCA7.2460
MurrietaCA12.56104
NorwalkCA8.5371
OaklandCA18.94157
OceansideCA13.77114
OntarioCA11.5996
OrangeCA8.8073
OxnardCA5.5646
PalmdaleCA7.8665
PasadenaCA19.69163
PomonaCA14.76122
Rancho CucamongaCA15.13125
RichmondCA8.6872
RiversideCA11.8598
RosevilleCA15.99133
SacramentoCA21.65179
SalinasCA9.3177
San BernardinoCA9.0575
San DiegoCA17.21143
San FranciscoCA22.85189
San JoseCA12.26102
Santa AnaCA8.0166
Santa ClaraCA19.75164
Santa ClaritaCA2.2719
Santa RosaCA10.1384
Simi ValleyCA24.95207
StocktonCA8.5771
SunnyvaleCA14.99124
TemeculaCA18.98157
Thousand OaksCA19.73163
TorranceCA13.06108
VallejoCA10.3586
VictorvilleCA8.6371
VisaliaCA6.4353
West CovinaCA17.91148
ArvadaCO18.79156
AuroraCO20.00166
Colorado SpringsCO19.69163
DenverCO26.99224
Fort CollinsCO11.8198
PuebloCO10.3285
WestminsterCO7.5462
BridgeportCT4.1634
HartfordCT12.02100
New HavenCT12.33102
StamfordCT15.49128
WaterburyCT28.99240
WashingtonDC37.56311
Cape CoralFL12.96107
ClearwaterFL28.79239
Fort LauderdaleFL166.751381
GainesvilleFL24.12200
HialeahFL7.5763
HollywoodFL79.56659
JacksonvilleFL13.63113
MiamiFL65.84545
OrlandoFL65.46542
Palm BayFL13.57112
Pembroke PinesFL0.655
TallahasseeFL25.36210
TampaFL34.26284
AtlantaGA40.95339
ColumbusGA8.9574
SavannahGA24.95207
Cedar RapidsIA8.7172
Des MoinesIA12.29102
AuroraIL8.0867
ChicagoIL13.50112
ElginIL8.3269
JolietIL4.7539
NapervilleIL18.33152
PeoriaIL2.6122
RockfordIL6.5454
SpringfieldIL24.09200
EvansvilleIN11.0792
Fort WayneIN6.7056
South BendIN7.9166
Kansas CityKS7.5563
OlatheKS12.71105
Overland ParkKS17.30143
TopekaKS14.12117
WichitaKS8.6372
Baton RougeLA17.87148
LafayetteLA3.3227
New OrleansLA11.3494
ShreveportLA6.0250
BostonMA9.2376
CambridgeMA25.67213
LowellMA5.6347
SpringfieldMA8.4970
WorcesterMA12.15101
BaltimoreMD20.29168
Ann ArborMI21.06175
DetroitMI7.9966
FlintMI6.8357
Grand RapidsMI18.61154
LansingMI13.12109
Sterling HeightsMI11.5796
WarrenMI11.1993
MinneapolisMN33.72279
RochesterMN11.2493
ColumbiaMO8.2969
IndependenceMO12.84106
Kansas CityMO12.83106
SpringfieldMO5.6447
JacksonMS2.8824
BillingsMT7.6864
CaryNC22.92190
CharlotteNC21.19176
DurhamNC16.64138
FayettevilleNC14.96124
GreensboroNC15.20126
High PointNC6.7156
RaleighNC17.58146
WilmingtonNC23.48195
FargoND6.6355
LincolnNE10.0683
OmahaNE14.67122
ManchesterNH9.1376
ElizabethNJ10.4086
Jersey CityNJ20.60171
NewarkNJ11.1993
PatersonNJ4.1034
AlbuquerqueNM12.46103
Las VegasNV39.91331
RenoNV14.65121
BuffaloNY37.50311
New YorkNY7.7264
RochesterNY29.92248
SyracuseNY21.35177
YonkersNY20.92173
AkronOH15.07125
CincinnatiOH33.34276
ClevelandOH28.22234
ColumbusOH18.68155
DaytonOH59.35492
ToledoOH9.4078
NormanOK6.3152
Oklahoma CityOK11.7297
TulsaOK8.4270
EugeneOR14.09117
GreshamOR8.5271
PortlandOR21.07175
SalemOR14.23118
AllentownPA11.8698
EriePA15.72130
PhiladelphiaPA12.12100
PittsburghPA30.75255
ProvidenceRI16.29135
CharlestonSC13.32110
ColumbiaSC24.75205
Sioux FallsSD17.55145
ChattanoogaTN10.1484
ClarksvilleTN6.7756
KnoxvilleTN21.24176
MemphisTN9.8982
MurfreesboroTN13.79114
AbileneTX4.2735
AmarilloTX2.6222
ArlingtonTX13.96116
AustinTX17.08142
BeaumontTX3.3828
BrownsvilleTX1.149
CarrolltonTX16.79139
Corpus ChristiTX7.8665
DallasTX15.53129
DentonTX12.35102
El PasoTX5.0842
Fort WorthTX14.03116
FriscoTX15.39127
GarlandTX11.0291
Grand PrairieTX12.54104
HoustonTX13.86115
IrvingTX18.96157
KilleenTX10.9491
LaredoTX5.5146
LubbockTX5.2343
McAllenTX6.9357
McKinneyTX13.73114
MesquiteTX12.16101
MidlandTX6.3052
PasadenaTX2.0117
PlanoTX24.25201
San AntonioTX13.41111
WacoTX2.4020
Wichita FallsTX0.968
ProvoUT3.5629
Salt Lake CityUT30.04249
West JordanUT9.6480
AlexandriaVA73.59610
ChesapeakeVA9.9082
HamptonVA8.7372
Newport NewsVA7.7564
NorfolkVA7.4161
RichmondVA41.62345
Virginia BeachVA12.79106
BellevueWA19.61163
EverettWA10.6888
SeattleWA22.67188
SpokaneWA11.4995
TacomaWA12.60104
VancouverWA21.01174
Green BayWI23.06191
MadisonWI18.01149
MilwaukeeWI15.30127

Table sorted by State, City
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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CreditDonkey does not know your individual circumstances and provides information for general educational purposes only. CreditDonkey is not a substitute for, and should not be used as, professional legal, credit or financial advice. You should consult your own professional advisors for such advice.

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