CFPB: Credit Cards On The Radar (Literally)

by Ken Paterson 0

One of the joys of Google searches is theunintended find. I was looking for something of earth-shatteringimportance to the credit card industry when I ran across RFQ-CFP-11-0038 which is a request for a quote from the CFPBfor “Credit Card Marketing Research.” This is a solicitation fortracking data on credit card solicitations; for examples, think ofMintel and Synovate, the bedrock competitive data sources for thecredit card industry.

Here is what the RFQ is looking for (copied fromwebsite):

With respect to originations marketing, the CFPB seeks toprocure access to reporting and data that will provide insightsinto:
• Originations mail volume
• Distribution of mail solicitations by type of product (rewards,non-rewards etc.)
• Distribution of mail solicitations by type of solicitation(pre-screen, invitation to apply)
• Distribution of mail solicitations by demographics (e.g.income)
• Pricing of products being marketed (fees, APR, promotional offersetc.)
• Household penetration of mail volume
• Distribution of mail solicitations by risk band
• Household penetration of offers by risk band
• Pricing of products by risk band
The CFPB is also seeking to procure access to similar informationwith respect to other solicitation channels (e.g. e-mail,advertising).

With respect to existing customer marketing and communications, theCFPB seeks to procure access to reporting and data that willprovide insight into:
• Marketing of balance transfers
• Marketing of purchase incentives
• Increases and decreases in APR
• Changes in terms

It is no surprise at all that credit cardsare on the radar of CFPB. From this request, we can see that theradar is focused on card marketing, targeting of risk bands, cardpricing, and marketing channel. The message is clear: CFPB meansbusiness, and it will have the data tools to support it.