Annual Fees Largely not Returning to Cards, Firm Says
Credit unions which supposed their card programs with no annual fees would necessarily benefit over bank cards that carried annual fees may need to think again.
Large card issuing banks have generally not brought annual fees back to their credit cards programs and have stepped up their direct mail marketing, according to a marketing consultancy.
Mintel Comperemedia reported large credit card issuers sent 1.1 billion offers for credit cards to American consumers in the second quarter of 2010, more than double the 419 million that were sent in the second quarter of 2009.
The firm also reported that while many had expected annual fees to begin reappearing among card programs, large card issuing banks have largely not been adding them. Mintel said that its data showed that fewer credit card programs (28%) carried annual fees than did in the second quarter of last year (33%).
"It wasn't long ago that we were speculating about the return of annual fees, the disappearance of teaser rates and the watering down of rewards programs, as card issuers attempted to maintain profits in the face of restrictive new regulations," notes Andrew Davidson, senior vice president of Mintel Comperemedia. "As the dust settles on the CARD Act, we continue to see evidence that this isn't happening."