Bank credit card charge-off rates were stable in September 2001, but performance deterioration is expected in the upcoming months.
According to Standard & Poor’s Credit Card quality indexes, the monthly charge-offrate stayed flat at 6.50% in September, but charge-offlevels are 140 basis points higher than they were a year ago.
Standard & Poor expects a rise in unemployment will result in an increase in loss levels to 8.4%.
September reports show increases in the number of delinquent accounts moving into the 30-plus, 60-plus and 90-plus days delinquent. The increase was expected because of the disruption in mail service after the terrorist attacks. Delayed payment also affected collection efforts in September.
Network
