Metris Credit Card

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 market segment.
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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