Credit Card Charge-Offs Jump as Delinquencies Near Record Lows
Lending institutions in the United States reported a 16 percent increase in their credit card chargeoff rates in the third quarter of 2011, according to data released last week by the Federal Reserve.
The Fed said that its member banks reported a seasonally adjusted, annualized credit card charge-off rate that averaged 5.81 percent in the third quarter, up from 5 percent in the second quarter. The average writedown rate was, however, drastically lower than the 8.71 percent rate reported in the year-ago period.
