Capital One Financial Corp. reported that its U.S. credit card segment's net charge-off rate increased to 9.77% of managed receivables in September from 9.32% the previous month.

The increase of 45 basis points for the McLean, Va.-based issuer's charge-off rate follows a decline of 51 basis points from July to August. A basis point is one-hundredth of a percentage point.

Delinquency rates of card accounts at least 30 days past due rose to 5.38% last month from 5.09% in August, according to a company filing last week with the U.S. Securities and Exchange Commission.

Cap One also reported that its auto finance segment's net charge-off rate increased to 4.58% last month from 4.31% in August, and 4.26% in July. The issuer's 30-day auto finance delinquency rate increased 10 basis points to 9.52% from 9.42% in August.

The composite delinquency ratio, which tracks eight closed-end installment loan categories such as credit card, auto and home-equity, reached a record high of 3.35% of all seasonally adjusted accounts in the second quarter, according to a report by the American Bankers Association (CCR Newsline, Oct. 1).

The Q2 ratio was 12 basis points higher than the 3.23% in the previous quarter. The association's report defines delinquencies as payments at least 30 days past due.

"Six consecutive quarters of job losses have taken their toll. With jobs lost and work hours cut, it doesn't take long for the financial pressure to become overwhelming," James Chessen, the ABA association's chief economist, said of the report's findings. "Falling behind on debt payments is an unfortunate side effect of high unemployment and a frozen job market. The picture won't change until the labor market improves and the economy picks up steam."

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