Card Defaults Surge to Record 11.49% in August, Moody’s Says

[Purveyor]

Source: Bloomberg

By Peter Eichenbaum

Sept. 23 (Bloomberg) -- U.S. credit-card defaults rose to a record in August and more losses may lie ahead as delinquencies climbed for the first time since March, according to Moody’s Investors Service.

Write-offs rose to 11.49 percent from 10.52 percent in July, Moody’s said today in a report. Loans at least 30 days delinquent rose to 5.8 percent from 5.73 percent. “Early- stage” delinquencies, or loans overdue 30 to 59 days, surged to 1.65 percent, from 1.41 percent, signaling higher losses in coming months. Banks typically write off loans after 180 days.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aOUFvgV93LaI

[SpiralHawk]

1. "You proles can just do what we Republicon fatcats do. Smirk." - xCommander AWOL (R)

"Tap your secret Swiss Bank Account. Bwaaa ha ha ha ha. Shock & Awe, Baby. Smirk."

- xCommander AWOL (R)

[ladywnch]

2. gee, I wonder what could have caused that... who could have forseen

this coming? Just because the credit card companies have jacked up interest rates, principle rates, fees.....doing everything they can to cause people to default. Who didn't see this coming when Congress gave the credit companies 9 months lead time before the new regs would kick in? Instead of getting ready for the new regs they've spent the lead time finding ways to stick it to the consumers before the rules kick in. Clearly they didn't really need the lead time to prepare.

[autorank]

3. So where's the cap on credit card interest?

Oh, that's not in the stupid bill of rights Congress passed.

How did they forget that?

These banks won't give up a percent of their outrageous interest in order to maintain their customer
base. From a purely business point of view, that's nuts.

[imdjh]

4. Well, Chase said it needed to average 12% when I worked there.

.

[aroach]

5. I'm about ready to tell them to go fuck themselves.

Sick and tired of weekly letters telling me how they've had to raise our interest rate because of the bad economy. One that was 9.99% is now 29.99%. We never missed a payment, were never late, never over the limit, always paid over the minimum payment. They are all like that. Out of 11 credit cards we have the only one that isn't an assholes is Capitol One. Believe it or not.

[aroach]

6. Knock on wood...

Watch me get a letter from Capitol One tomorrow just cause I said that.