Consumer Payment Card News

Card Delinquents

Credit card delinquencies based on total dollars outstanding dipped to its lowest level for a first quarter since 1990. However, by all measures delinquency edged up since the prior quarter. Since the end of 2005, delinquent dollars have increased from 3.21% to 3.44% and based on the number of past-due credit card accounts rose from 4.27% to 4.40%. Both figures dropped sharply in the fourth quarter due to the October changes in the federal bankruptcy law. According to the American Bankers Association’s “Consumer Credit Delinquency Bulletin,” delinquencies based on total dollars outstanding were 3.76% for the first quarter of 2005. Based on the number of accounts past-due, the figure for the first quarter of last year was 4.76%. The ABA says gas prices eased at the end of 2005 and so did credit card late payments. But, the favorable gas-price effect evaporated during the first quarter along with the Federal Reserve’s action to raise interest rates.

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|_3. 1Q CREDIT CARD DELINQUENCY HISTORY |
|_3. (based on total dollars outstanding) |
|_. | 2000: | 3.94% |
|_. | 2001: | 4.13% |
|_. | 2002: | 4.50% |
|_. | 2003: | 4.51% |
|_. | 2004: | 4.65% |
|_. | 2005: | 3.76% |
|_. | 2006: | 3.44% |
|_3. Source: ABA Delinquency Bulletin |

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