NEW YORK (AP) -- Bank of America reported a sharp drop in the rate its credit card customers defaulted on their cards during January, while late payments declined at a slower pace.
The rates for both measures for the Charlotte, N.C.-based bank's credit card division remain near their lowest points since before the economic crisis began, according to a filing with the Securities and Exchange Commission submitted Wednesday.
DEFAULT: Bank of America wrote off 5.63 percent of balances on an annualized basis in January, down from 6.05 percent in December. A year ago, the bank had a 9.2 percent default, or charge-off, rate.
LATE PAYMENTS: Payments on 3.8 percent of balances were delinquent, or late by 30 days or more, in January. That compares with 3.82 percent of balances in December, and 5.17 percent in January 2011.
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 slipped 11 cents to $7.88 in afternoon trading.
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