Capital One 30+ Delinquencies Increase As Charge-Off Rate Declines
Capital One's August charge-off and delinquency rate data was filed today, and while some voodoo accounting likely helped the annualized charge-off rate decline from 9.83% to 9.32%, the 30 day+ delinquency increased from 4.83% to 5.09%. So while the marginal credit card holder is "expected" (see definition below) to start paying credit card balances due, the recidivist abusers keep ignoring those 3rd notification letters.
The definition of the net-charge off rate as provided by COF:"Average Loans Outstanding used in the calculation of the Net Charge-Off Rate includes an estimate of the uncollectible portion of finance charge and fee receivables. We recognize earned finance charges and fee income on open ended loans according to the contractual provisions of the credit arrangements. When we do not expect full payment of finance charges and fees, we do not accrue the estimated uncollectible portion as income. The estimated uncollectible portion of finance charges and fees is adjusted quarterly."
August charge/off delinquency summary:
July charge/off delinquency summary: