Despite earlier concerns, the Credit Card Accountability, Responsibility and Disclosure Act of 2009 has not led to less appealing credit card offers sent to consumers, according to Mintel Comperemedia, which tracks card-offer mailings.
In fact, the law seems to have yielded benefits for consumers as issuers are using favorable terms to compete for customers.
Industry watchers had widely expected more annual fees, fewer teaser rates and watered-down rewards programs to help issuers cover some of the revenue that will be lost because of requirements of the CARD Act, most of which took effect in February. Only 28% of card offers during the second quarter included an annual fee, down from 33% a year earlier, according to a new report from Mintel.
"As the dust settles, we have evidence that this [negative impact] is not happening," Andrew Davidson, a senior vice president with the Chicago research company, said in a press release Friday.
Issuers mailed 1.1 billion credit card offers to consumers during the second quarter, up 163% from a year earlier, Mintel found.
In addition, the majority of offers, 56%, had teaser rates for balance transfers or purchases, up from 37% a year earlier.
Most balance-transfer offers have a 0% teaser rate, and some issuers are extending the length of the introductory period to 14 months or longer, Davidson said. However, the longer the introductory period the higher the percentage rate issuers are charging after the period expires.
