Metris , a financial services provider, was formed in 1994 with the objective of pursuing and cultivating
underserved markets belonging to low-and middle income markets.
Metris’ credit card distribution was facilitated by its subsidiary, Direct Merchants Bank. Other
products that Metris promotes are memberships clubs and insurance. The company also established a strategic
alliance with Household Credit Services and Bank of America that resulted to a substantial spike in card
subscription and membership. During this time, Metris received a lot of praises and complements from industry
representatives, who were impressed with the speed in which the company was growing and expanding.
By the late 1990s, the Metris credit card brand was acclaimed as one of the most promising products in the industry
with a subscriber base numbering millions. The company continued with its aggressive marketing approach, venturing
into markets that not a lot card issuers dare explore. It also had a formidable collections team that was highly
successful in securing debt from Metris credit card users. Metris had so much confidence in its collections group
that it decided to purchase bad debt portfolios from other financial institutions.
Metris was able to squeeze in a respectable performance towards the end of the 1990s and began to acquire more
companies to accommodate its ever growing ambitions. What could have been an auspicious start for the company
however misfired and the company started to decline primarily caused by the sharp fall of the credit card industry
in early 2000s. The once coveted and respected Metric credit card brand started to lose its lustre.
The early 2000s was a bad period for credit card companies. A series of debilitating news hit the industry such as
rising interest rates, weak lending market, privacy issues and higher capital requirements. One by one, credit card
companies started to falter and groan from the effects of the harsh business environment. Metris was in a
precarious position since it was catering to low and mid-income customers. The company built its success from the
backs of low wage earners who patronized their products and services such as their Metris credit card brand. But
now analysts are starting to doubt if the company would remain profitable if they kept their focus solely on this
Dark clouds loomed when the company started to report contracting profit numbers and rising delinquency levels. For
the first time in its history, the company started to report revenue losses. In 2003, the company that launched the
once vaunted Metris credit card brand conceded defeat and announced that it could not say for certain when
Metris would return to profitability.
Source: Credit Cards For People With Bad Credit Rating
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