Credit-loss rates took a turn for the worse in August, according to monthly reports by the nation's largest credit card issuers.

The figures, released Tuesday, followed a month-over-month decline in the rate at which lenders wrote off debt as uncollectible in July, and underscore continuing distress in the industry from record levels of bad loans. The drop in the industrywide chargeoff rate in July was the first monthly decline since September 2008, according to an index maintained by Moody's Investors Service Inc.

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