While credit card issuers decline U.S. customers they still attract Canadians

According to the new data from Mintel Comperemedia, a service that provides direct marketing competitive intelligence, credit card issuers in Canada haven’t reduced mail solicitations as rapidly as they have in the U.S. While the U.S. direct mail credit card offers were reduced by 50% in Canada this figure decreased only by 8%. The difference is attributed to less severe financial downturn in Canada.

Stephen Clifford, Vice President of Financial Services at Mintel Comperemedia: “In Canada, the economy and financial system remained relatively strong last year, so banks were not forced to reduce marketing direct mail offers as substantially as in the US. Canadian banks did not face the same levels of loan losses or tightened credit that US issuers did.”

Nevertheless the research firm expects the same trend to take place soon in Canada too. For the fist quarter of 2009 the credit card mail is projected to drop by 20%. But this is still less than projected reduction of 47% for the U.S.

“Banks in Canada now feel the impact of the global recession and increasing credit card losses at home,” adds Stephen Clifford. “With unemployment and personal bankruptcies on the rise in Canada, issuers are becoming more discerning about who they send new card offers to and how many are being distributed.”