Trade Republic credit card: Financial expert criticizes misleading advertising for interest rate offers and cashback cards

Trade Republic credit card: Financial expert criticizes misleading advertising for interest rate offers and cashback cards

According to a report by www.stuttgarter-nachrichten.de,

The Baden-Württemberg consumer advice center has warned Trade Republic for misleading advertising for its new credit card and its interest rate offer. Specifically, it's about the advertised four percent interest on the settlement account and the offer of a cashback card with the advertising statement "Receive 1 percent saveback on card payments in your savings plan". Consumer advocates criticize that the services advertised are not true and that relevant information is withheld. A spokesman for Trade Republic responded that the allegations do not correspond to the business model.

The impact of this warning could be significant for Trade Republic. If the company does not adapt the disputed advertising statements and issue the requested cease-and-desist declaration, this could result in a lawsuit. In addition, the negative image due to misleading advertising can lead to a loss of trust among potential customers. It is important that companies be transparent about their advertising claims so as not to jeopardize consumer trust.

In addition, the restrictions and criticisms of the consumer advice center could have an impact on potential customers who may be deterred from taking out a deal with Trade Republic. It is crucial that companies deliver on expectations and promises in advertising to build long-term customer relationships and gain consumer trust.