by Joseph Kenny | 02/5/10

Credit card direct mail campaigns declined during the recession and in the face of increasing federal scrutiny concerning lender practices. But signs the industry is returning back to normal operation is seen in rising numbers of direct mailings by credit card companies. For the first time in three years the direct mail volume rose during the quarter ending December 2009.

This is per Mintel Comperemedia which is involved in the direct mail industry. The credit card mail has increased as card issuers seek new customers once again. During the recession many credit card companies cancelled consumer credit cards as lending tightened. Now that it appears the economy is beginning to pick up again, the credit card companies are ready to issue new cards.

Faced with the implementation of the Credit CARD Act this month, many credit card companies are nervous about potential losses of revenue. The direct mail campaigns are used to solicit new customers. They rose by 47 percent in the fourth quarter of 2009 when compared to the third quarter.

The direct mailings are actually credit card offers. There has been speculation over the last year that the new legislation will lead to fewer issuances of credit cards. And the number of direct mailings in 2009 is far below the offers made by mail in 2008.

The increase in credit card mailing is not surprising. Credit card companies are trying figure out how to preserve revenue after the new rules take effect on February 22. There have been a number of cases where major card issuers have raised interest rates and fees in anticipation of the new restrictions. Government regulators and consumers are watching closely to see how the credit card industry responds to the new regulations.

In fact, it is estimated that one-third of the new credit card offers going out have an annual fee attached to them. In 2008 only 20 percent of the credit card offers had annual fees. Clearly the annual fee is one way the companies hope to maintain revenues.

Some see the rise in direct mailings as a positive sign. When credit card companies are mailing out offers it means the companies have more confidence the economy is improving. It also signals a belief that consumers are ready to spend again and that will fuel the recovery.

Some people are upset that it seems like business as usual again. One of the reasons the Credit CARD Act was passed is because many of the credit card marketing programs were seen as predatory. They were offering credit to people who should never had qualified and then charging exorbitant penalties when they were late on payments.

In the end though, it is up to consumers to resist the direct mailing offers when they don’t need a credit card or should not be accepting additional ways to get into debt. The one way to end predatory lending, besides through government regulation, is for consumers to make good decisions about their debt. This means shredding those direct mailings in many cases.