Capital One Says Credit Card Defaults Rose Slightly in September

Capital One (COF) said its credit card defaults rose slightly in September, a sign that more people may be struggling to repay their debts.

Capital One said its annualized net charge-off rate, a measure of the debts the company does not expect to ever be paid off, was 8.38% in September, Reuters reported. The rate was 8.19% in August.

Capital One is the third-largest U.S. issuer of Visa-branded credit cards and the fifth-largest MasterCard credit card issuer.

Accounts that were at least 30 days delinquent, a measure of future losses, fell slightly to 4.53%.

Persistently high unemployment and weak economic growth have put a squeeze on family incomes and could lead to higher rates of credit card delinquency.

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Capital One need to go after their consumers who are not paying their accounts. Instead they keep raising their rates on the comsumers that do pay on time. I am tired of paying others bills by paying higher interests rates. When I do inquire why our Intersts Rates keep going up. Capital one says, it is a decision across the board. When is it going to stop?

October 22 2010 at 7:40 PM Report abuse rate up rate down Reply

Capital One is one of the credit card companies that aggressively pursues consumers and provides credit to higher risk people, like college students. They charge higher rates and fees... I've cancelled my Capital One accounts, and encourage you to do the same...

October 16 2010 at 6:14 AM Report abuse rate up rate down Reply