UPDATE 1-Capital One US credit card defaults fall in April
Fri May 15, 2009 6:43am EDT
* U.S. credit card default rate 8.56 percent
* International card bad loans rise to 8.91 percent
NEW YORK, May 15 (Reuters) - Capital One Financial Corp (COF.N: Quote, Profile, Research, Stock Buzz), an issuer of MasterCard and Visa credit cards, said on Friday U.S. credit card defaults fell in April as the company changed its customer bankruptcy accounting.
The bank and credit card issuer extended the period to consider a customer bankrupt in order to write off that debt.
In a regulatory filing, the company said the annualized net charge-off rate for U.S. credit cards -- debts the company believes it will never collect -- fell to 8.56 percent in April. The charge-off rate was 9.33 percent in March.
The rate for loans at least 30 days delinquent fell to 5.04 percent from 5.08 percent.
In auto loans, Capital One's charge-off rate fell to 3.46 percent in April from 4.08 percent in March, while the delinquency rate rose to 7.81 percent from 7.52 percent.
In international operations, the charge-off rate rose to 8.91 percent in April from 8.67 percent in March, while the delinquency rate rose to 6.43 percent from 6.25 percent.
The stock is down 23 percent this year, but has more than tripled in price in the past two months, coming off a 13-year low. (Reporting by Juan Lagorio; editing by Derek Caney)
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