Alliance Data defaults rise in October

AP News
Posted: Nov 16, 2009 11:38 AM

Alliance Data Systems Corp. said Monday that defaults on its private-label credit cards rose in October.

But the provider of card services to retailers and wholesalers said its loss rates so far in the fourth quarter "are stable and tracking to the company's guidance."

Net charge-offs, or the amount of loans written off as unpaid, as a percentage of average managed receivables, rose to 9.7 percent in October from 9 percent in September.

Alliance Data said October's net charge-offs were higher than recent trends "due to the timing of certain items," while September was lower for the same reason. The company did not specify those items.

Alliance Data said the average of the two months was in line with its expectations of a mid-9 percent rate.

Shares rose $1, or 1.7 percent, to $61.52 in morning trading.

The Dallas-based company provides private-label credit card services to retailers including Victoria's Secret, Ann Taylor and Pottery Barn.