A new report finds that credit card solicitations to U.S. households has dropped off by 17% in the second quarter to slightly more than one billion pieces. However, response rates have remained flat at 0.6%. According to Synovate’s “Mail Monitor,” card issuers that cut back solicitations the most were HSBC (-54%) and Citigroup (-45%). Citibank’s mail volume was the lowest quarter recorded in over 10 years. Overall, the card mail volume figures are the lowest seen since 4Q/03. For households receiving offers, the reductions to the prime rate have had a positive impact on the terms being promoted. Synovate notes that the mean single/go-to APR declined from 12.91% in 2Q/07 to 11.36% in 2Q/08.
CARD MAIL HISTORICAL
YEAR OFFERS RESPONSE
1998: 3.44b 1.2%
1999: 2.54b 1.0%
2000: 3.54b 0.6%
2001: 5.01b 0.6%
2002: 4.89b 0.5%
2003: 4.29b 0.6%
2004: 5.23b 0.4%
2005: 6.05b 0.3%
2006: 5.76b 0.5%
2007: 5.30b 0.6%
2008: 4.00b 0.6%
Source: Synovate's Mail Monitor
