SmartMoney has an article that should be disturbing to the credit card industry “10 Things Your Credit Card Company Won’t Tell You.” Of the ten things, several involve card issuers withholding, disguising, or intentionally making information about prices, policies and procedures difficult for customers to understand.
Other businesses thrive on making information less than transparent. Mutual fund companies and 401(k) providers are required by law to disclose hidden fees and expenses, but do so in hard-to-read disclosures. Wireless phone carriers and cable companies bill customers for surcharges and “recovery fees” that masquerade as government-mandated taxes. Even some airline and travel sites quote airfares without taxes and fees, hoping consumers won’t notice until it’s too late. Many hotels surprise guests with mandatory “technology,” “energy,” and other fees.
Although customer-unfriendly, these practices are highly profitable. Most customers don’t notice or if they do, they throw up their hands. But relying on customer inattention, laziness, and inertia doesn’t seem like a good long term loyalty model for any company. Customers shouldn’t have to “beware” of the brands they do business with. Given the competitiveness of these businesses, why haven’t we seen more “no hassle” products in which information is transparent?
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