6 of 10 credit card user complaints unresolved
Korea Exchange Bank received the most complaints and had the lowest settlement rate, according to the agency.
KEB received 12.6 complaints per 1 million card users, while only 44.4 percent received compensation for damages.
The KCA analyzed the number of complaints received per 1 million card users of the 10 companies with the largest number of complaints from 2010 through August 2013.
Hana SK Card had 12.5 cases, and Shinhan Card had 10.7 cases per 1 million members
Hana SK Card had the highest settlement rate of 75.9 percent. BC Card (50 percent), Citi Card (53.8 percent), KB Kookmin Card (54 percent) and Shinhan Card (56.9 percent) were all below the average of 58.3 percent.
The most common customer complaints involved discounts and value-added services (22 percent) followed by change to installment terms (17 percent).
The Credit Card Standard Terms for Individual Members stipulate that value-added services must be maintained without reduction for at least a year and card companies must inform customers six months prior to any changes through the following methods: Web site, credit card statement, mail or e-mail.
The KCA said that because value-added benefits are factors in choosing cards, they should be maintained longer and users should be notified sooner.
“The stipulated method of informing consumers could lead to complaints as they could often fail to check [the information given to them]. Credit card companies need to expand the number of notices and the methods, such as informing consumers once a month through text messages for six months prior to changes,” said a spokesman for the KCA.
BY KIM JUNG-YOON [email@example.com]