Consumer Payment Card News

Delinquency

Despite a funky economy, credit card delinquencies during the first three months of this year, based on total dollars outstanding, continued to hover at thirteen year lows. Additionally, delinquencies have declined for three consecutive quarters. According to the American Bankers Association’s “Consumer Credit Delinquency Bulletin,” delinquencies based on total dollars outstanding for 1Q/07 were 3.46%, compared to 3.54% in the fourth quarter and 3.44% for 1Q/06. Based on the number of accounts past-due, the figures were 4.41% for 1Q/07, 4.56% for 4Q/06, and 4.40% one-year ago. The ABA says the improvement in credit card late payments is somewhat remarkable, given that the economy was not operating on all cylinders. The ABA explained that slow job growth, falling home prices and weak economic growth helped to worsen consumers financial position.

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|_2. 1Q CREDIT CARD DELINQUENCY HISTORY |
|_2. (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% |
|_. 2007: | 3.46% |
|_2. Source: ABA Delinquency Bulletin |

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