Maryland's Key Federal Savings Bank is adding a new meaning to the expression "the check is in the mail."
In a partnership with Western Union, the Havre de Grace-based thrift has arranged for a more convenient and expedient method of securing new cardholders.
Key Federal is encouraging customers to apply for a secured credit card by telephone. It has authorized Western Union to deliver to Key Federal a check for the deposit required to secure the line of credit.
The idea behind Key Federal's latest marketing venture is to speed up the time it takes for an application to be processed and for the thrift to receive a security deposit.
"Everyone is in a hurry to get what they want now," said Jill Brader, Key Federal's vice president of marketing. And "there is always the issue of buyers reluctance," she added, referring to the occasional customer who decides not to apply for a secured card during the time it takes to receive an application in the mail.
Typically, the process of requesting an application by mail and receiving a credit card takes about six weeks. Ms. Brader contends that the partnership with Western Union can reduce that time to three weeks.
"Key Federal is the first bank that can shave a week or more off your waiting time for a secured card," said Robert M. Bouza, president of Key Federal's credit card operation.
While other banks allow customers to apply for credit cards over the telephone, it appears that Key Federal may be the first issuer to have an arrangement with an express delivery company.
Ms. Brader said that of the normal call volume the bank receives from people requesting secured card applications, 37% are allowing the bank's customer service representatives to collect application information over the phone, and to authorize Western Union to mail a check on their behalf.
In addition to the application information, Key Federal asks customers to provide information about their checking accounts so that Western Union can create checks to send Key Federal. Western Union does not assume any liability if there are insufficient funds in the customer's bank account.
