While the economy had stunted credit card direct mailings in the past year, mailings will pick up again after the Credit Card Accountability Responsibility and Disclosure Act of 2009 goes into effect in February, 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 next year with offers that accommodate the new rules, says Andrew Davidson, senior vice president at Mintel Comperemedia, a Chicago-based direct-mail tracking firm.
Mintel contends mailings dropped off because of the economy 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.
