Consumer Group Slams Credit Card Marketers

Share this content:
A consumer group accused credit card marketers of greatly increasing the credit they offer to consumers while at the same time supporting new bankruptcy legislation that would make it harder for consumers to declare bankruptcy.


"Can any of [the credit card issuers] explain why they need [the bankruptcy] relief when their profits are increasing and they are trying to sell many more cards and offering cardholders far more credit?" Travis Plunkett, legislative director of the Consumer Federation of America, said at a news conference yesterday in Washington. "What's worse, erecting new bankruptcy barriers will encourage issuers to market and extend credit even more aggressively."


The CFA said that recent data show that credit card issuers dramatically expanded their marketing and available credit in the past year. Issuers also kept credit card interest rates up while the cost of loaning money plummeted, boosting profit by more than 50 percent over five years ago, the group said.


In the 12 months ending March 31, 2002, credit card issuers mailed 5 billion solicitations and offered more than $3 trillion of unused credit -- $30,000 per household, the CFA said.


But consumers are increasingly rejecting these solicitations and refusing to draw on the expanding credit lines, the group said. The CFA cited Federal Reserve Board data here, showing that revolving consumer credit, almost entirely credit card debt, declined $29 billion in the first three months of 2002.


close

Next Article in Data/Analytics

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above