Credit Card Defaults Hit Record Highs In April

U.S. credit card defaults rose in April to record highs, with Citigroup and Wells Fargo posting double digit loss rates, as the recession slashed more than 2 million jobs since the beginning of the year.

"U.S. card credit quality continues to struggle," John Williams, an analyst at Macquarie Research, said in a note to clients.

Read the whole story: Reuters

Comments

[Sundialsvc4]

09:21 AM on 05/20/2009

Here's the deal, folks...

You've got about 80% of the consumer-banking industry locked up in about twenty banks who are "not banks, and not insurance, and not investment." They claim to be all three, but the reality is that they have ... ahem ... f*cked up every one of those businesses all at the same time.

They are: BANKRUPT.

They are: FAILURES. Zippo. Kaput. Nada. Scrooo-o-o-o'd.

But they are so politically connected, such an endless wellspring of bribery, that the "let them eat cake" crowd on Capitol Hill just "can't figure out" that the party is over.

Unleash the power of the laws that you right now have. Send the Treasury and the FDIC in, and tell them to do with this insolvent bank what they do with every other insolvent bank. "Of course every single dime of the depositor's money is guaranteed. Of course."

Where you find securities fraud, usury, extortion, swindling and all that other garbage ... call in the FBI and let them do THEIR jobs.

Restore the regulations from the 1930's that kept banking, investment and insurance at arms' length from one another. Don't delegate guardianship of the hen-house to a fox.

These IDIOTS tried to screw the customer ... hundreds of millions of them at once ... and they have inflicted intentional injury upon about 306 million P-L-A-I-N-T-I-F-F-S. You, and me.

Washington: stop taking their damned bribes!

[Social Construct]

04:04 PM on 05/19/2009

I think this article needs better exposure. This has tsunami potential.

[Kungfublood]

12:22 AM on 05/19/2009

The banks are getting just what they are working so hard to get when they jack up the agreed upon interest rate when you have never been late and then refuse to speak like rational human beings, small wonder many people say go to hell to the credit card swindle and refuse to pay ( even if they could).

[KarateKid]

09:50 PM on 05/18/2009

Legalized loan sharking, that's what this is. The only things missing are the collection thugs, only incessant, harassing phone calls. Well, they won't get me anymore. Cut up the cards a year ago, all paid up, cash and carry. I dumped my worthless and costly house, now rent, my cars are paid off, and I'm free at last. Credit rating? Who gives a s##t? Another banker gimmick.

Now, I live like my grandparents did, and don't buy things I can't afford. If you have to make payments, you CAN'T afford it. The banks will tell you otherwise, but don't believe it. And the lawyers calling themselves Congressmen and Senators are in their hip pockets and there won't be any relief. In a capitalist society, temptation leads to "economic growth". For the government to function, we have to be persuaded to overspend and go into debt. Be strong and resist it.

As I closed my Bank of America accounts, I had a lot of fun telling them off, that they were fired. The arrogance of these banks never ceases to amaze me, charging me a monthly fee, among other things, for using MY money. Have you figured out how much interest you ACTUALLY get, after deducting all the fees? Now, I have only a credit union account and that's all I'll need.

The more they convince you that you "need" something, the longer it will take to get your freedom back.

[Epiphany2b]

01:44 PM on 05/18/2009

When do you think these big bank issuing credit cards are going to get the fact that they are PUSHING people into default??? You want the debt paid off, you have to make if affordable.

[Tom95134]

11:42 AM on 05/18/2009

Maybe there is a reason behind these defaults, e.g., make a late payment and your interest rate goes to 20+% (likely on all your cards) and you get hit with a nice big penalty that is usually larger than a monthly payment. Use your cash reserve on your checking account and the interest rate on your credits cards is likely to jump even though you pay back the cash reserve the next day.

And what do we see in Washington? The Republicans and conservative Democrats blocking any kind of Bill that would limit the amount of interest and penalty that banks could charge. Why is this happening? Because the Congressmen and Senators are in the pocket of the banks. Take the time to look up how your Representative or Senator votes on these Bills designed to limit credit card holder abuse and call them. Ask them what they are doing and who is paying their salary, the public or the banks. Let them know you're mad and not going to take it anymore.

[KarateKid]

09:57 PM on 05/18/2009

The government really leads by example, don't they? They overspend worse than any of us do, putting our children and grandchildren into debt. And when we overspend and act irresponsibly, do we get a bail out? H e l l NO. Everyone should file for bankruptcy to erase the credit card debt and make them choke on their plastic. We'll end up paying for their bail out, anyway, so we might as well get ours.

[Samalabear]

10:16 AM on 05/18/2009

Before the "I am responsible crowd" comes on here and thumbs their noses at people in trouble I suggest they watch this series from NBC's "Dateline" by Chris Hanson called "Debt Trap" All of the people who think that most Americans were living "high on the hog" and being irresponsible need to watch this. There are 10 clips in all and it goes all way from interviews with Elizabeth Warren, explains how health care fits into all of this, the banks, credit card interest caps that were removed 25 years ago, and collection tactics. Watch them all at once or a little bit at a time. Sometimes MSM does do a good job, but these things need to be kept at the forefront.

http://www.msnbc.msn.com/id/21134540/vp/29923501#29899066

[rektruax]

11:41 AM on 05/18/2009

they won't be swayed...

[rektruax]

09:59 AM on 05/18/2009

fvk 'em...

[Ander Chi]

02:07 AM on 05/19/2009

There is nothing they can do if we all decide to not pay. The FED print more fake money and keep us in more FEAR. That is what makes the world go around.