Consumer Payment Card News

Bankruptcy Factor

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While personal bankruptcies are running about 3% lower than last year, there is still a significant impact on the card industry. In March, bankruptcies topped 150,000, a factor noted in MBNA’s charge-off figures for May. MBNA reported last week that its charge-off rate edged up by 18 basis points in May due to the March filings. According to the Administrative Office of the U.S. Courts, a record number of filings took place in the quarter ending June 30, 2003, when 440,257 filings were made. So far, 282,052 filings have been made in the second quarter of this year, about 158,000 short of the all-time record.

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|_2. Monthly Filings Historical |
|_. Jun 03:| 130,242 |
|_. Jul 03:| 138,400 |
|_. Aug 03:| 138,266 |
|_. Sep 03:| 127,079 |
|_. Oct 03:| 148,044 |
|_. Nov 03:| 131,921 |
|_. Dec 03:| 113,383 |
|_. Jan 04:| 114,737 |
|_. Feb 04:| 124,719 |
|_. Mar 04:| 152,567 |
|_. Apr 04:| 145,543 |
|_. May 04:| 136,509 |
|_2. Source: CardData (www.carddata.com) |

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