Cap One's December Charge-Off, Delinquency Rates Jump

By Capital One Financial Corp.

Published January 15, 2009, 2:00 a.m. EST

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Updated January 15, 2009, 1:00 a.m. EST

1 Min Read

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Capital One Financial Corp. yesterday reported that its U.S. card segment's net charge-off rate increased to 7.71% of card receivables in December from 6.98% in November.

Cap One's 30-day delinquency rate rose to 4.78% in December from 4.7% a month earlier, according to the company's filing with the U.S. Securities and Exchange Commission.

The company expected a spike in charge-offs early this year when, in October of 2008, Cap One said it was notifying thousands of credit card customers of new minimum-payment terms on their accounts. 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.

Capital One Financial Corp.

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