Credit Card Mail Volume Drops For Third Consecutive Quarter: Mintel

For the third straight quarter, the number of credit card solicitations mailed to Americans has declined. Acquisition mailings dropped from 1.67 billion pieces in this year’s first quarter to 1.54 billion in the second quarter, according to Mintel Comperemedia.

The steady decline started in the third quarter of 2007, when mailings amounted to 1.86 billion pieces.

"Undoubtedly, this is a symptom of the global credit crunch," said Lisa Hronek, senior analyst at Minte, in a statement. "Record losses from the subprime fallout and rising delinquencies have squeezed issuers' credit so tight, they're tapping out. Add that to the fact that consumers' credit is already stretched and you're left with a tough market for credit card issuers."

According to Mintel Comperemedia data, during the past year:

Discover and Citibank both cut credit card mail (by 18% and 31%, respectively). Each realigned marketing strategies, with Discover increasing its share of loan mail to 12% and Citibank increasing its share of banking mail to 8% in Q2 2008 (from 4% and 1%, respectively, in Q2 2007);

Discover increased its loan mail volume by over 200% and Citibank boosted banking mail by over 700%

Bank of America held steady on credit card mailings and boosted its mortgage and loan promotions by 26%;

Capital One and Chase also maintained credit card mail volume, but each cut lending offers (by 26% and 33%, respectively) while increasing banking direct mail (by 80% and 60%); and

HSBC reduced credit card, banking and loan mail volume across the board, sending 52% less offers overall.

According to Mintel, a recent report from The Federal Reserve showed that, of 52 major banks, only one said it expected to ease lending standards in the next 12 months.