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Capital One Financial Corp. yesterday reported that its U.S. Card segment's net charge-off rate increased to 6.98% of card receivables in November from 6.54% in October. Cap One's 30-day delinquency rate rose to 4.7% in November from 4.48% a month earlier, according to a company filing with the U.S. Securities and Exchange Commission. In October, Cap One said it was notifying thousands of credit card customers of new minimum-payment terms on their accounts, and the change likely will cause a spike in charge-offs early next year because the new rule will increase the minimum payment for delinquent customers (CardLine, 10/29). In the letters, Cap One announced that the new minimum payment due is 1% of the principal plus new interest and late fees. The previous minimum was a flat 3% of the principal.
