With the pre-dominant use of the social media websites by the credit card lenders in order to promote & flourish their business there are few eye brows that are found to rise recently. Some of the consumer advocates are criticizing this policy of trade & feel there is a potential deficiency in the system of law which is being exploited.
The credit card companies are making the use of the social networking media sites as a modern tool to engage with their current customers & subsequently can get connected to the prospective customer through this form of promotion.
Among these companies who are making these moves in order to advertise & promote their credit card policies & usage there are certain reputed companies. This list would include names like the American Express, J.P. Morgan Chase, Capital One Financial, Discover Financial Services, Citigroup & other top players of the credit card providing industry. The social networking sites such as Facebook, Twitter, etc. are coming largely to the use of these companies. The companies have also got their noses into the social games such as the Farm Ville, City Ville, Pioneer, etc. where their presence make it easy for them to get connected with their customers.
The social networking websites provide the customers with certain discounts on buying particular merchandise issuing their cards. Also there are deals that are automatically uploaded to their card account based on their performances in a particular game or on a particular type of review they provided in the social networking sites. There are some reports which confirm the criticisms of these trade & promotion policies by experts & consumer advocates as they feel this virtual online mode could take its place in the college campuses & involve the youngsters into the business or promotion. However the online promotion of these card lending companies via social media sites do not violate the Credit CARD Act which included the protection of young people from any unfair marketing, debts due to overpriced credit cards, etc.
There have been issues regarding the extensive amount of space provided by the social media sites to the card lending companies which the critics feel can harm the youngsters. However no legal action can still be taken under these circumstances as the companies abide the terms & conditions of the Credit CARD Act. The Consumer Financial Protection Bureau (CFPB) responsible for monitoring of practices made by the credit card companies is looking into the matter & would review the lenders’ use of the social media to promote the trade.