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Chase Sees Credit Card Defaults Rise in February

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Chase Sees Credit Card Defaults Rise in FebruaryThe latest regulatory filing from JPMorgan Chase revealed that the company saw credit card charge offs – accounts at least 180 days behind in payments that are no longer considered collectable – climb to 6.21 percent in February, up from 5.97 percent the previous month, according to a report from The Associated Press. This was the first time since October that Chase, the nation’s largest credit card lender, has seen defaulted accounts increase, though the current level is well below its all-time high of 10.91 percent observed in January 2010.

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Despite the increase in charge offs, Chase found that the rate at which consumers fell 30 days or more behind on payments fell to 3.29 percent in February, the report said. That was down from a delinquency rate of 3.39 percent in January, and the lowest figure observed since September 2008.

Lower rates of delinquency are typically viewed as positives for lenders because changes in that figure are often reflected in those for charge offs several months down the line.

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