PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

Credit Card Charge-Offs: Off The Cliff!

Ken Paterson by Ken Paterson
September 2, 2011
in Uncategorized
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

There are a limited set of indicators where”off the cliff” is a good thing. Credit card charge-offs areone.

The Federal Reserve recently published their Q2/2011 data on creditcard charge-offs, and while the trajectory is not a surprise, thevelocity is worth noting. I watch the stats for the top 100 banks,and after peaking at 11.05 percent (annualized) in Q2/2010, andafter just four quarters, they now stand at 5.60 percent. Forperspective, the last time we saw a rate this low was Q3 of 2008,the start of the economic meltdown. It has been a remarkablejourney.

We see in our survey data that consumers are experiencing fewernegative actions from their issuers (account closures, linereductions, and pricing increases) which reflect on one hand thatthe worst appears to be behind us. So when will demand pickup?

Consumers don’t appear to be ready to make a bullish move yet (moreon that topic in the weeks to come). And credit card lenders aren’texactly ready to move far beyond prime territory yet (as the FRBdescribes it in their July Senior Loan Officer Survey for July,”Moderate net fractions of banks reportedly eased their lendingstandards on consumer loans over the past threemonths.”-translation: not so much).

It has been ugly. It’s getting better fast. And it’s still tooquiet…

Tags: DebitMercator InsightsMerchant AcquiringMobile PaymentsPrepaidSelf Service and ConvenienceSocial Media
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily

    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    direct deposit

    Nacha Launches Campaign to Reach Millennials on the Benefits of Direct Deposit

    February 1, 2023
    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    Equinix Helps UK-Based Payments Provider Enable Faster, More Reliable Payments Processing

    January 31, 2023
    credit card tumbling

    How to Detect, and Prevent, Credit Card Tumbling

    January 30, 2023
    Why Businesses Need to Adopt Real-Time Payments as a Competitive Differentiator

    Why Businesses Need to Adopt Real-Time Payments as a Competitive Differentiator

    January 27, 2023
    faster payments

    Faster Payments Are Set to Revolutionize Modern Digital Payments

    January 26, 2023
    How AI can Help Manage Payments Risk in 2023

    How AI can Help Manage Payments Risk in 2023

    January 25, 2023
    cross-border payments

    How to Implement Effective and Innovative Cross-Border Payment Strategies

    January 24, 2023
    credit card experiences, digital payments, b2b payments

    Will Consumer-to-Business Payment Trends Drive B2B Global Growth in 2023?

    January 23, 2023

    • Advertise With Us
    • About Us
    • Terms of Use
    • Privacy Policy
    • Subscribe
    ADVERTISEMENT
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • News
    • Resources

    © 2022 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Register to download the U.S. Bank report - Real-time payments