Fewer Account Write-offs Predicted
Posted on January 25th, 2011
Consumers are starting to handle their finances better, which has resulted in lower write-offs, according to a report by six major card issuers. Write-offs, accounts 180 days past due that are deemed uncollectable, peaked in the second quarter at 10.66%, according to Federal Reserve statistics. In the two years prior to the recession, they averaged 3.82%.
Projections are that there will be fewer write-offs in the coming months due to the fact that the weakest borrowers have already been written-off over the last few years. Between October and November, Citi Group led the way with the biggest decline in write-offs, falling from a little more than 1.5%. American Express saw a drop from of .3%. While Discover Financial Services said its write-offs fell .11%; Bank of America Corp. write-offs fell to .23%.
Two issuers saw a rise in write-offs. Capital One showed an increase of .30%. JP Morgan Chase reported a rise of .34%. According to analysts at Moody’s Investors Service, large banks need not be concerned about single month spikes. In fact, they predict that the average write-off rate will fall below 7% next year.
See a complete list of all of our credit card companies >
Similar Posts:
- Good News on Credit Card Delinquencies
- Top 10 Credit Card Companies
- Balance Transfer Credit Card Fees in September
- Will consumers compare credit cards to boost spending power?
- More Than 8 Million Stop Using Credit Cards
Tags: Account, Account Writeoffs
Filed under Credit Cards |