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Credit card issuers should be careful about how they introduce any fees to customers in the current economic climate, suggests GfK Financial Services. The New York-based market-research firm based its recommendation on the results of a recent survey suggesting that many consumers distrust financial-services companies, including card issuers. In an online survey of 4,000 U.S. adults conducted last May, 48% agreed that financial-services companies "never look out for their customers' best interest," while 67% agreed that financial-services companies are "always trying to sell me something." Some 77% of respondents said they "do not like to be in debt at any time." Doug Cottings, GfK Financial Services managing director, tells CardLine the survey findings suggest consumers are likely to be "suspicious" about card issuers' motives. "Our research shows there is a lot of unsettledness right now among credit card customers from all the negative media attention this year on banks and attention paid in the press to card-industry reform," he says. Subsequently, consumers are likely to fear card issuers will try to make up for their losses from the economic downturn and card reforms "by nickel-and-diming people on fees," Cottings says. "Card issuers should take a proactive approach to communicating with their customers, providing useful advice and explanations for all of their actions," he says. "Because in the absence of such information, our research shows that consumers are going to assume the worst," which could lead to loss of market share.
