Credit Card Defaults Keep Climbing

CNN:

Banks continue to write off credit card debt as consumers hurt by record high unemployment default at an increasing rate.

Regulatory forms filed this week by some of the nation's largest banks showed default rates on credit cards rose in May. The default rate is a measure of loans that the bank does not expect to be repaid.

Read the whole story: CNN

Comments

[DaCoach]

This is another outright deception from the banks. The default rate of 12.5% is an estimate of the ultimate loss to the banks. Essentially they are saying that $1 in every $12 will not be collected. Yet further down down the banks admitted that the actual delinquency rate was only 1.57% which was the second straight month it had declined.

OK Mr. Banker, how does 1.57% translate into a 12.5% write off. Your nose is growing and it's time you were held accountable for the deception that rules your world and our economy.

[munki]

Credit Card Companies, especially Chase lied to me...

They have their representatives verbally promise miles - take your fee...

Despite prior to applying disclosure by the consumer side that I had it before...

I was told I will get miles for 6 months... finally, I was told otherwise today...

They should be penalized for it despite the fine print...

Something important should be spelled out in 10 pica or larger...

I am sure many are trapped into Credit Card like I did for Mileage Card...

Regulations will only work when people get together and file complaint to oversight regulatory agency... WE NEED IT... Enforce it!

[FogBelter]

I believe that credit card debt was securitized and reinvested on Wall Street just like Mortgages were, so this is just the first step in a new wave of Toxic Assets hitting Financial Markets.

[rabid dog]

Just curious. Does it help that these firms push away those who are able to use and pay each month by raising interest rates to 30% causing any sane person who doesn't actually have to purchase items on a card to call and cancel? How is that helpful to their bottom line? I imagine those that aren't in financial straights from the loss of their job etc. are dropping like flies as clients. Seems counter-productive.

[Dialogue]

Bailing out Mega-Banks maybe viewed as a safety net issue, but whose safety net? California and other states safety nets for individuals are running out, yet, Mega-Banks get bail out funds. The thing is, if tens of millions of individuals go under financially, and the Mega-Banks remain standing, what does that accomplish? If tens of millions of individuals go under, so will their bills to utility companies, mortgage companies, etc., - Its not rocket science.

[LaHenche]

Think of this and then make your decision about whether or not you should default your accounts in protest:

http://www.youtube.com/watch?v=acLW1vFO-2Q

A little commentary from an old friend...

[eilish]

ABSOLUTELY excellent. Eases the pain of feeling helpless a bit.

[LaHenche]

Excellent news. Keep up the pressure.

DEFAULT AS PROTEST.

This is the only way your voice will be heard. Love him or not, Obama and Co. feels the best policy is to continue bailing these bastards out. Let them fail I say.

PUSH THE ZOMBIE BANKS INTO OBLIVION AND DEFAULT!

[fleaba]

I agree. I wonder what would happen if say, 50% of people just didnt' pay.

[rkfdred]

Oh, those poor banks. They would rather rape the cardholders with massive interest and late fees than to enable them to actually pay down their cards. Perhaps if they were a little less greedy, people would actually try to pay something. When a person is trying to honor their obligations and the debt holder makes that impossible, it doesn't surprise me that some just give up.