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Sunday, March 21, 2010

Mad credit-card users aren't taking it anymore

Posted by admin on February 22, 2010

It's a big day for consumers: Sweeping reforms regulating the credit-card industry go into effect today. Among them: Your card issuer won't be able to increase the interest rate on an existing balance or charge you fees for over-the-limit transactions without your permission. (The Fed summarizes the changes here.) All major victories for cardholders.

But if you think the world of credit cards is going to be all rainbows and unicorns now, think again.

Banking analyst Ron Shevlin summed it up nicely on American Public Media's Marketplace show Monday morning:

I would characterize what the future's going to look like here is the airlinification of the credit card industry. They've kind of nickeled and dimed consumers to death.

Airlinification, indeed.

If buying an airline ticket was ever a pleasant experience, it's hard to remember — because now, it's fraught with a bevy of increasing fees, poor customer service and a general feeling that airlines have nothing better to do than to come up with creative ways to break into your wallet. (Want to check a bag? It'll cost you. Paying that fee at the airport? It'll cost you even more. Need a blanket on your flight? You got it — after you pay 8 bucks.)

So that not-so-warm, not-so-fuzzy feeling you get when dealing with the airlines? Prepare to experience it (even more) with your credit card issuer. Let's face it: The relationship between cardholders and their banks was never all that great. But now, I have a feeling it's going to be downright hostile. Card issuers are finding ways to get around the new rules by setting all sorts of new traps. And I don't think there's any end in sight.

Last week, I wrote about how one issuer, Citibank, is imposing a new annual fee on some of its cardholders (myself included). And judging by your comments, the frustration is reaching a fever pitch. Paula from Los Angeles wrote:

Screw the customer any way you can is the credit card companies' motto these days.

Added David from Watson, Oklahoma:

We all need to find ways to hit the banks where it really hurts. They make a small fortune on their cards already. I'm also sick of hearing them snivel about their credit losses. Give me a break!! Who bombarded every warm-bodied American with credit offers? It certainly wasn't me, and I should not have to pay "for their increase in the cost of doing business" now. They can well afford to pay for their own misdeeds.

Paula and David are not alone. That's just a sampling of the frustrated and angry comments we received — on just one bank's new fee.

So can anything be done? In this month's MONEY I wrote a piece on how you can spring yourself from these credit card traps: By dumping your big bank and going with a smaller issuer or credit union instead. That's because these issuers are more likely to be focused on the customer relationship and less on the bottom line. Remember, there's still one major difference between banks and airlines: When you need to fly from Point A to Point B, you often don't have a huge number of carriers to choose from. But credit-card issuers? They're as plentiful as stars in the sky.

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Intuit spends a mint on Mint

Posted by admin on September 15, 2009

Will success spoil Mint.com? That’s the $170 million question following Monday’s news that tax software giant Intuit is spending that whopping sum to buy the startup, which operates a popular, free online service for tracking and managing people’s financial lives. (MONEY gave Mint top honors last year when we reviewed four online money trackers, including Intuit’s.)

Even though the Internet is all about change, users of both Mint.com and Intuit’s free QuickenOnline.com are suddenly anxious about changes that might result from the deal (which is expected to close by year’s end). Maybe it’s because personal finances are so…you know, personal.

Felix Salmon at Reuters is worried that the two-year-old Mint will lose some of its tang once it’s part of Intuit’s corporate beast. Jordan Golson at GigaOm predicts that Intuit will designate Mint the company’s free, entry-level consumer offering and start upgrading — and charging for — Quicken Online. And a friend even emailed me with the question, “Should I be worried and/or delete my account?”
mint
Maybe this will calm you down:

You’ll still get a free ride.

Both Intuit and Mint seem committed to offering a free management tool, and charging money for it would only lose customers they could otherwise engage. “They’re looking to get more people involved,” says Ron Shevlin, a senior analyst at Aite Group. “When you do that, there’s an opportunity to develop the relationship and expand.” But Mint users will become “prospects for cross-selling other Intuit products.” Translation: Expect a lot more marketing aimed at Mint users.

Mint founder and CEO Aaron Patzer says, “The product you see now from Mint will always be free.” Mint may, however, charge a fee for optional new features, such as credit-score access and expense reporting tools.

Neither site is going away, but expect some integration.

“Mint will serve as the primary online service — the way we get new customers to Intuit. And Quicken Online will become something that helps connect our 11 million desktop customers to mobile and web,” says Intuit spokesman Scott Gulbransen.

Patzer, who will head Intuit’s personal finance group, is more frank: “There’s no point in two engineering teams developing two different products. We’ll try to keep it looking a bit like Quicken, but the data, history and categorizations of Quicken Online users will be imported into Mint.” So Quicken Online users may experience more changes than Mint users, but they’re in good hands. Mint is routinely praised for its strong interface and user experience.

Mint users will probably soon have the ability to enter transactions manually, a feature Quicken Online currently offers. Quicken Online users will gain access to Mint features, as well. To some users who have expressed frustration with Quicken products, Patzer says candidly, “Instead of Mint becoming bad like Quicken, expect Quicken to become good like Mint.”

Intuit should make Mint more stable and robust.

Intuit’s wealth and resources will allow Mint to add features it couldn’t develop in the past. For example, Mint currently sends readers reminders when credit card bills are due. Patzer wants to incorporate Intuit’s bill-pay technology into Mint so that users will also be able to easily make payments on those cards. There are also plans to offer tools that will make tax prep easier, like importability of transactions tagged with labels such as “business expense” directly into TurboTax.  Finally, adds Patzer, “Intuit has the resources to go global.” So maybe Intuit will be exporting Mint as well.