Credit Card Direct Mail Drops Again

Financial institutions still adjusting strategy in credit-tightened market, says Mintel Comperemedia

Mortgage and home equity direct mail cut in half for 2008, reports Mintel Comperemedia

Chicago (August 12, 2008)-New data from Mintel Comperemedia shows mortgage and home equity lenders still plagued by faltering home sales, credit woes and consumer anxiety. The direct marketing-tracking firm reports that these lenders have reduced direct mail by 50% when comparing the first six months of 2008 to the first six months of 2007.

Lenders sent an estimated 750 million secured loan mail pieces from January to June 2008. In 2007, they sent 1.5 billion during the same period, reports Mintel Comperemedia.

Secured loan direct mail has been steadily declining each quarter since Q1 2007. Mintel Comperemedia's Q2 2008 estimates show mortgage and home equity mail volume 10% lower than during Q1 2008 (360 million versus 400 million in Q1).

"Economic struggles have hit lenders hard," explains Farah Huq, senior analyst at Mintel. "As companies work through a shaky market and new legislation, they're scaling back notably on direct marketing. Many seem to be waiting for winds of change before they send more offers."

The mortgage sector has fueled recent declines. According to Mintel Comperemedia, lenders reduced mortgage offers by 53% when comparing the first half of 2008 with the first half of 2007. Home equity product offers showed only a 44% drop in volume during the same period.

But in Q2 2008, mortgage direct mail volume actually increased a bit (from Q1 2008), while home equity mail continued to plummet and bring overall totals down. Mintel Comperemedia reports that lenders mailed 8% more mortgage offers during Q2 2008 (240 million) than during Q1 2008 (220 million).

"Though mortgage mail volume remains far lower than a year ago, this is the first uptick we've seen in two years," comments Huq. "It could be because spring is a prime 'buying' season or it could be a sign that lenders are slowly beginning to increase direct mail. Still, we don't expect significantly higher mail volume until the market settles and consumer confidence returns."

Major players Chase and Capital One drove the quarterly increase in mortgage direct mail. Chase increased its mail volume 90%, while Capital One boosted offers nearly 140% between quarters. The top direct mail campaigns from each lender encouraged recipients to refinance into a fixed rate mortgage for predictable, affordable monthly payments.

Prepaid Cards Offer Safe "Charge" Option for Teens

Mintel recommends teenagers as potential target market for prepaid debit

Online security still a prime concern for Americans, finds Mintel

Fear of identity theft grows even as companies try to reassure consumers

Online security still a prime concern for Americans, finds Mintel

Fear of identity theft grows even as companies try to reassure consumers