As a consumer it can be difficult to find unbiased information on customer service and reliability. The Better Business Bureau (BBB) gathers and reports information on business reliability and consumer dissatisfaction. The BBB accepts complaints on behalf of consumers regarding specific companies’ business practices. Complaints must be regarding a customer-to-business or business-to-business transaction related to the advertisement or sale of a product or service. The following chart breaks down the financial services industry and businesses that offer credit services. Examining these types of businesses that offer similar services, it is interesting to see the variance in the number of complaints and inquiries.
United States Better Business Bureau- 2008 Statistics
| Business | Inquiries | Report Rank | Complaints | Complaint Rank | |
| 1 | Banks | 322,376 | 35 | 20,935 | 3 |
| 2 | Credit Cards and Plans | 144,612 | 88 | 8,988 | 15 |
| 3 | Loans | 154,681 | 81 | 2,776 | 67 |
| 4 | Credit Unions | 99,502 | 123 | 1,151 | 149 |
| 5 | Credit Services | 65,517 | 174 | 961 | 172 |
| 6 | Payday loans | 16,616 | 482 | 473 | 272 |
Is this to say that using a bank to house your savings is a bad idea because there have been complaints filed against them? Certainly not. It does however remind us to shop around when looking for the best place to meet your needs when it comes to financial services and credit options.
A credit card is not the answer to everyone’s credit needs just as a short-term loan might work better for some than for others. Educating yourself on the types of credit options available and the places to get them is the best thing you do. Check out our Money Matters section on Borrowing and Managing Credit.
Looking to better educate yourself on another aspect of personal finance – like how to select a financial advisor – check out our new Money Matters piece on selecting a financial advisor.
One Comment
It is always important to review a company’s rating with the Better Business Bureau prior to doing any business transactions. Companies should be willing to share the BBB rating with you and proudly announce that they are a member of the agency. If they are an accredited member, that should be mentioned as well. I am surprised that payday loans didn’t have a higher inquiry rate.
One Trackback
[...] some really amazing benefits, it’s probably not worth paying a fee for a credit card. Remember, it always pays to shop around for credit cards, bank accounts, and everything [...]