Right to reply: Clearer credit needs real backing

To launch their ‘Credit Made Clearer’ campaign last week Capital One released some interesting – if not entirely surprising – statistics.  

Half of the credit card holders they asked admitted that they rarely checked their monthly balance or examined the payments that they had made and there were more figures along these lines as you can see in our article on the story.

The piece was rounded off with a comment from a doctor who put such behaviour down to 'ostrich syndrome'. Well why not?

Capital One might be able to diagnose the symptoms but they’re no closer to the cure with their ‘Credit Made Clearer’ campaign.

The campaign itself is well executed - it’s a mini-site complete with cute animations and even cuter copy (sample line: “credit, like aunties, comes in all different sizes”) – it’s the basic idea behind it that’s flawed. 

It’s all very well to offer basic information, and it may well tick a few boxes when the FSA or the UK Cards Association or whoever come a-knockin’ to ask if they’re living up to their commitments on providing consumer information but consumers themselves need more.

There is still as lack of clear basic information on specific credit cards from the people who know – the card companies themselves – and where cardholders should expect to find it – in the same place that they can sign up for products and manage their accounts.

Without this, the initial goodwill created by the mini-site will quickly dissipate.

Confusion also leads to consumers making account mistakes – inevitably in this sector, often very expensive mistakes – and this inevitably harms a financial brand, even more so if the company is selling itself on simplicity. 

Some companies are already getting wise to this and creating better ways for consumers to manage their money (see Justin Schamotta’s <a href=” http://www.netimperative.com/news/2010/june/guest-comment-when-will-the-uk-get-a-mint.com/”>When will the UK get a mint.com?</a>)  but they’re still in the minority.

In short, if credit card companies really want to make credit clearer – and the rewards from loyal customers would make it worth their while – they have to make a significant effort to engage with their customers.

That means less schmaltz and more substance.

Julia Kukiewicz is the editor of personal finance news, reviews and price comparison site Choose.net where users can compare credit cards as well as current accounts, personal loans and insurance.  

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