by Bill McBride on 2/16/2010 10:36:00 AM
Tuesday, February 16, 2010
From Reuters: Capital One credit card defaults rise in January (ht jb)
Capital One Financial Corp's U.S. credit-card defaults rose in January, in a sign that consumers continue to remain under stress, it said in a regulatory filing.Click on graph for larger image in new window.
Capital One said the annualized net charge-off rate -- debts the company believes it will never collect -- for U.S. credit cards rose to 10.41 percent in January from 10.14 percent in December.
This graph shows the COF annualized credit card charge-off rate since January 2005.
Notice the spike in 2005 associated with a surge in bankruptcy filings ahead of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA).
Capital One credit card annualized net charge-off rate is now at 10.41% - above the peak in 2005.
As Reuters notes, Capital One is usually the first to report monthly credit card charge-offs. The other major credit card issuers will report later today.
Posted by Bill McBride on 2/16/2010 10:36:00 AM