Despite the risks, however, Mariner Finance is eager to gain new customers. The company declined to say how many unsolicited checks it mails out, but because only about 1 percent of recipients cash them, the number is probably in the millions. The “loans-by-mail” program accounted for 28 percent of Mariner’s loans issued in the third quarter of 2017, according to Kroll. Mariner’s two largest competitors, by contrast, rarely use the tactic.
Incidentally 1% is the response rate necessary to make spam email and fax financially viable. Coincidence?
Do businesses that rely on a low response rate of 1-2% and succeed have something in common? Could they all be considered predatory?