Latest Debt News
Aggressive credit card marketing targets consumers
24/10/2005 17:15:00
Consumers are being warned about the marketing ploys of credit card companies in the run-up to Christmas.
According to the Times, banks will be spending more on credit card mail-outs than ever before in an attempt to woo customers with their offers.
"The marketing costs of these campaigns equate to more than £150 a card. However, the banks know that they will get their money back, with interest, if they succeed in making their card top-of-wallet this Christmas," explained Barry Stamp, joint managing director of Checkmyfile.com.
They achieve this by charging an average of two per cent extra interest for their postal credit cards than the market norm, to cover marketing costs.
Furthermore, research carried out by the Direct Mail Information Service (DMIS) reveals that two in three recipients of credit card mail are enticed by the offers.
As a result, more and more people are likely to be saddled with growing credit card debts this winter that they will struggle to pay off.
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