Subprime Offers Pace Credit Card Mail Rise: Report
Credit card issuers have begun increasing their direct mail credit card offers, largely because of increased mailings to the subprime market, according to market research firm Synovate.
During the fourth quarter, U.S. households received 398.5 million credit card offers, a 46% increase from the 272.5 million offers received in the prior year, reported Synovate.
This segment had experienced incredible credit tightening following the recession and initial passage of the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD) Act, which reportedly aimed to reform credit granting practices.
The law is set to take effect Feb. 22.
Issuers have scrambled since mid-year to redesign and reconfigure their business models to accommodate all the changes required by the new legislation, noted Synovate.
“As the economy recovers, even at a modest pace, we expect credit to become available to consumers, albeit at a higher price,
