JPMorgan Chase, the nation's second-largest credit card issuer, is currently working on completely revamping its entire lending business.
Under the direction of its head, Gordon Smith, JPMorgan Chase's credit card lending business has taken considerable strides in the last few years in terms of revamping the way it handles bad debt, deals with customer service issues and markets its various financial products, according to a report from Reuters. The marketing aspect has been particularly important to the company in recent years because of the amount of revenue that can potentially be generated by new customers.
For instance, Chase sent out 1.3 billion offers for new credit card accounts in the second quarter of the year alone, up from about 850 million on a year-over-year basis, the report said. But that strategy seems to have paid off because credit card spending on new accounts rose 53 percent over the last quarter of 2010.
Many consumers may be more comfortable in dealing with credit card debt these days as a larger number of them made efforts to get out of debt and rebuild their finances in the months since the recession ended.