Consumer Payment Card News

Card Losses

Charge-offs headed north, hitting 4.81% in September to a new record for this year. This is the fourth consecutive month that credit card charge-offs have increased. There has been concerns that the mortgage meltdown may have spilled over into the general consumer finance market. During the third quarter Citi reported that charge-offs for bankcard and private label cards declined to 4.41% compared to 4.55% in the prior quarter and 4.26% one-year ago. BofA posted third quarter charge-offs of 4.86%, compared to 5.20% in the prior quarter and 4.18% one-year ago. Capital One reported that the net charge-off rate for U.S. credit cards was 4.13% for the third quarter, compared to 3.73% for the second quarter and 3.39% one-year ago.

Jan 07: 4.33%
Feb 07: 4.39%
Mar 07: 4.44%
Apr 07: 4.60%
May 07: 4.65%
Jun 07: 4.60%
Jul 07: 4.62%
Aug 07: 4.77%
Sep 07: 4.81%
Source: CardData (

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