In 2010, private label credit card spending reached a total of $183 billion, down from the year before, according to a recent report.
The Private Label Credit Cards in the U.S. report, conducted by Packaged Facts, found that total spending fell 14.4 percent during the year compared with 2009. It also represented the steepest decline in the 2006-2010 time period. The firm said that the lower usage was due to consumers spending less and becoming more cautious of taking on new debt in an uncertain economy.
Some of the biggest losers from the downturn have been Wells Fargo and other big names, who rely on the merchant services product.
“Private Label Credit Cards in the U.S. reports that Wells Fargo, which focuses mostly on smaller specialty retailers such as furniture stores, saw the greatest decline in receivables,” the firm stated. “Citibank also saw its private label card receivables fall significantly, as did GE Capital, despite adding $1.6 billion to its receivables balance.”
Other reports have found that spending is lower than before the recession when it comes to consumers using credit. The Equifax National Credit Trends Report revealed that credit usage was 45 percent lower than it was prior to the start of the recession.Back To Blog