Mailing Error

A marketing consulting firm was hired by a bank to send preapproved credit card applications to two groups. One group had an excellent credit history and was to be offered low-interest, high-limit credit. The other group had a poor credit history and was to be offered high-interest, low-limit credit. The marketing consulting firm sent the “excellent credit” applications to the group with a poor credit history and the response to the mailing was immense. The bank sued the marketing consulting firm for negligence over the mailing error. Total Cost: $500,000.