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Bucks Blog: Bigger Banks vs. Smaller, in Customer Satisfaction

April 25, 2013 by Leave a Comment

Many consumers love to hate big banks. But the largest banks have become better at making their customers happy, according to the latest study from J.D. Power and Associates.

Customer satisfaction with banks over all has risen from last year, mostly due to improvements at the biggest institutions, the company’s latest Retail Banking Satisfaction Study finds.

Over all, banking customer satisfaction rose to 763 points (on a 1,000-point scale), an increase of 10 index points over last year. The largest increase came from the “big banks” segment, which rose by 16 points. (The segment includes the six largest banks by deposits: Bank of America, JP Morgan Chase, Wells Fargo, Citibank, U.S. Bank and PNC Bank.) The study solicited customers’ opinions about their primary bank in January. The report includes more than 120 banks.

The study assesses customer satisfaction in areas like account information, fees and problem resolution, and ranks banks in 11 regional markets: California, Florida, mid-Atlantic, Midwest, New England, North Central, Northwest, South Central, Southeast, Southwest and Texas.

The biggest banks are often outranked in various markets by smaller institutions. In New England, for instance, the top-ranked bank was Bangor Savings Bank, while national banks like Bank of America and JPMorgan Chase ranked below the region’s average. And in Texas, Frost National Bank led the rankings.

But smaller banks didn’t always win out. In the Midwest region, JPMorgan Chase topped the rankings, outscoring 22 other banks.

Big banks are still outranked by midsize banks overall (as a group, the midsize segment ranked 785 on the scale), but are closing the gap after a period in which new fees and the elimination of free checking accounts turned off customers. Now, fees have begun to “stabilize” and big banks are doing a better job of explaining their fee structures to customers, the report says. About a third of customers now say they “completely” understand their banks fees, up from about a quarter last year, the study reports.

Jim Miller, senior director of banking at J.D. Power, said in an interview that the big banks were doing a better job of reducing the number of problems that customers encountered and “executing on basic customer service.” The largest banks, like Chase, are also expanding their use of mobile banking technology. That makes it more convenient for customers to bank, which adds to their satisfaction.

Do you use a big bank? Are you satisfied with your treatment?

Article source: http://bucks.blogs.nytimes.com/2013/04/25/bigger-banks-vs-smaller-in-customer-satisfaction/?partner=rss&emc=rss

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Bucks Blog: Goodbye to Rachel From Cardholder Services

November 10, 2012 by Leave a Comment

11/9/12 | Updated to make clear that calls from “Rachel” may continue from other firms outside of the F.T.C.’s latest action.

So long, Rachel. I certainly won’t miss you or your annoying phone calls from “Cardholder Services.”

The Federal Trade Commission recently acted to shut down five “robocalling” firms in Arizona and Florida that it says are responsible for millions of illegal telemarketing calls, including the familiar pre-recorded messages from “Rachel.”

“At the F.T.C., Rachel from Cardholder Services is public enemy No. 1,” Jon Leibowitz, chairman of the F.T.C., said in a statement.

Actually, Rachel is a voice recorded years ago and recycled by various firms, according to an article in June in The New York Times.  While the F.T.C.’s action may put a dent in Rachel’s productivity, other companies continue to use her message.

“I’d be as delighted as everyone else to see her disappear,” said C. Steven Baker, director of the F.T.C.’s Midwest region. “We’re working on it.”

Federal courts granted the agency’s request to temporarily halt the operations of the five firms. The agency asserted that they tricked consumers into paying hundreds of thousands of dollars by making phony claims that they could reduce credit card interest rates in return for a fee — sometimes as high as $3,000 — paid up front.

I admit I wasn’t aware of what exactly Rachel was pitching, since if I immediately hung up when I heard her greeting. But many other consumers apparently listened, and even pressed a number to hear more from a live person.

After the telemarketer “approved” the consumers for a “program” to get rates as low as 0 percent, according to the F.T.C., the telemarketer informed them that there was an upfront fee, ranging from several hundred dollars to nearly $3,000. To persuade consumers to pay the fee, the F.T.C. said, telemarketers would often say that it would be more than offset by the money the consumer would save through the program.

In some cases, the F.T.C. asserted, consumers’ credit cards were charged, even if they didn’t agree to pay for the service. In other cases, the F.T.C. contended, the telemarketers did not disclose a fee at all, or claimed there would be no fee.

After consumers paid the fee, the F.T.C. alleged, they typically found — surprise, surprise! — that the companies did little or nothing to lower their credit card interest rates. And they often reneged on promises to refund the fees.

The F.T.C. is trying to crack down on robocalling, and is even offering cash prizes for proposals for innovative technology  to curtail the practice. (Some robocalls, like those from political candidates or charities seeking donations, are allowed, the F.T.C. says. But if the recording is a sales pitch, and you haven’t given written permission to get the calls, it’s illegal — and most likely a scheme.)

The agency also provided tips on what to do if you get unwanted automated telemarketing calls. Hanging up is at the top of the list.

Did you ever hear from Rachel? Did you end up getting charged a fee?

A version of this article appeared in print on 11/10/2012, on page B4 of the NewYork edition with the headline: Squelching A Robocaller.

Article source: http://bucks.blogs.nytimes.com/2012/11/08/goodbye-to-rachel-from-cardholder-services/?partner=rss&emc=rss

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