Marketing chief defends DM over consumer debt

by Noelle McElhatton Marketing Direct 26-Sep-07, 12:45

Direct marketing is not responsible for the record levels of consumer debt in the UK, according to the marketing chief of Capital One, the UK’s second-biggest mailer.

Interviewed by Marketing Direct in the wake of the Northern Rock and global 'credit crunch' crises earlier this month, Justin Basini, vice-president of brand advertising at Capital One, said he did not think direct marketing "has a responsibility per se to ensure that people who can’t manage credit don’t get it".

Basini said he was not concerned about Chancellor Alistair Darling’s warning that banks need to be more careful about their consumer-lending decisions, as Capital One is "a very responsible lender".

Agencies with credit card accounts believe the turmoil of last month, and the spotlight on growing consumer debt, would not damage DM but could result in more emphasis on retention rather than acquisition mailings by credit card companies.

NatWest said it markets mortgage and credit card lending to non-customer account holders but that the majority of sales are to customers. Neil English, NatWest senior marketing manager, brand strategy, said: "We apply stringent criteria to who we do and don’t lend to."

Mike Dodds, managing director of OgilvyOne, which handles the DM for American Express’s charge and credit cards, said agencies needed to work with list managers "to ensure high-risk groups are not targeted. Responsible lending and responsible borrowing facilitated by responsible marcomms: it’s in danger of sounding dull, but it will have to be the way forward".

For the full transcript of the Justin Basini interview, go to www.brandrepublic.com/marketingdirect