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Most Major U.S. Lenders See Delinquencies and Charge Offs Drop

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Most Major U.S. Lenders See Delinquencies and Charge Offs DropFewer consumers were behind on their credit card bill payments in April, as those who were 30 days behind dropped across the board, and all but one major lender saw fewer charge offs, according to a report from Reuters. Instances of accounts being stricken from lender records as being uncollectable increased only for Bank of America, to 8.25 percent from the 8.18 percent in March. The institution, which is the biggest credit card lender in the U.S., typically has higher rates than its five major competitors.

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American Express, with its more affluent customer base, once again had by far the lowest instances of both delinquency and default, the report said. It saw April charge offs slip to 3.5 percent from the 3.7 percent observed in March, while 30-day delinquencies fell to 1.7 percent of all accounts from 1.8 percent.

Citi saw the largest decline in delinquencies overall, to 3.87 percent from 4.21 percent, the report said. However, Capital One enjoyed by far the most substantial drop in defaults, to 4.97 percent from 5.87 percent.

Charge offs and delinquencies have been steadily improving over the last several months, perhaps as a result of past defaults locking many risky consumers out of the borrowing system entirely.

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