Discover charge offs fall to another low
The amount of credit card accounts one of the nation’s largest lenders had to write off as being uncollectable fell once again in August, dropping to an all-time low for the financial institution.
Discover Financial Services recently announced that the number of accounts so delinquent that they had to be stricken from company records slipped to just 3.6 percent of all balances, down from the 3.83 percent observed in July, according to the Associated Press. Those accounts carried a total value of $50.8 million, while July’s default rate cost Discover $54.4 million.
The company has enjoyed improving charge off rates over each of the last six months and now has one of the lowest default totals in the credit card industry, the report said. The current total is well below the company’s all-time high of 9.11 percent, observed in February 2010. Meanwhile, the rate at which consumers fell 30 days or more behind on payments also fell in August to 2.49 percent from July’s 2.6 percent.
Charge offs have been declining for all major credit card lenders over the last year or more as consumers continue to make more on-time payments.