Bank of America Oct. defaults, late payments slip

AP News
Posted: Nov 15, 2011 12:06 PM
Bank of America Oct. defaults, late payments slip

Bank of America on Tuesday reported slight dips in the rates of default and late payments by its credit card customers for October.

The rates for both measures for the Charlotte, N.C.-based bank's credit card division are at their lowest points since before the economic crisis began.

DEFAULT: Bank of America wrote off 5.98 percent of balances on an annualized basis in October, down from 5.99 percent in September. A year ago, the bank had a 10.15 percent default rate.

LATE PAYMENTS: Payments on 3.97 percent of balances were delinquent, or late by 30 days or more, in October. That's down from 3.99 in September, and 5.6 percent a year ago.

PEAK RATES: Bank of America's worst month for charge-offs came in August 2009, when they hit 14.53 percent. Card companies typically write off loans after they're six months past due.

Delinquencies reached their highest point in April 2009, at 8.01 percent. The figure is an indicator for what to expect for defaults in coming months.

Shares of Bank of America added 11 cents to $6.16 in midday trading.