Furthermore, the cost of information about credit cards
has declined. In 1988 the U.S. Congress passed the Fair
Credit and Charge Card Disclosure Act (D’astous &
Miquelon, 1991; Federal Reserve Board, 1994). This act
amended the Truth in Lending Act to expand disclosure
requirements for applications and mail solicitations for
credit cards, making consumers’ comparison shopping
easier. More information comes directly to consumers in
the form of direct marketing mail solicitations, which
reduces consumers’ information acquisition costs.
During 1998, card issuers sent an all-time record high of
3.45 billion direct mail solicitations, representing a
significant 15% increase over 1997 (BAIGlobal, 1999).