Credit card direct mailings are forecasted to pick up again after the Credit Card Accountability Responsibility and Disclosure Act of 2009 takes effect in February, industry experts say.
Issuers are responding to compliance measures required by the legislation, such as notifying customers of changes, but they also will start sending out more mailings with offers that accommodate the new rules, says Andrew Davidson, senior vice president at Mintel Comperemedia, a Chicago-based direct-mail tracking firm.
Mailings dropped off in 2009 because of the economy, according to Mintel, but have hit rock bottom and are ready for an upswing. “Some issuers have also been holding back because of the CARD Act,” says Davidson, who notes issuers are retooling their card offerings because of the changes. “The whole landscape of customer acquisition has changed.”
Mintel cites four types of cards issuers are supporting in direct mailings. The largest portion offers cards with no fees and rewards attached. Other categories are fee-based cards with rewards, credit-building cards with fees but no rewards and “plain vanilla” cards that have no fees and no rewards. Fewer issuers will focus on the “plain vanilla” niche in the new CARD Act environment, Davidson says.