Consumer Payment Card News

Late Payers

Credit card delinquencies, based on total dollars outstanding, rose for the fourth consecutive quarter, rising 29 basis points from one-year ago. Sequentially, delinquent dollars as well as the number of past-due credit card accounts rose a 16 basis points. Both figures remained well below 3Q/05 level. According to the American Bankers Association’s “Consumer Credit Delinquency Bulletin,” delinquencies based on total dollars outstanding for 3Q/06 were 3.50%, compared to 3.34% in the second quarter and 3.74% for 3Q/05. Based on the number of accounts past-due, the figures were 4.57% for 3Q/06, 4.41% for 2Q/06, and 4.74% one-year ago. The ABA noted that the pressure points that squeeze consumer’s budgets still remain, making it difficult for some people to meet their debt obligations.

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|_2. 3Q CREDIT CARD DELINQUENCY HISTORY |
|_2. (based on total dollars outstanding) |
|_. 1980:| 3.40% |
|_. 1985:| 3.15% |
|_. 1990:| 4.01% |
|_. 1995:| 4.21% |
|_. 2000:| 3.93% |
|_. 2005:| 3.74% |
|_. 2006:| 3.50% |
|_2. Source: ABA Delinquency Bulletin |

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