NEW YORK (AP) -- Capital One Financial Corp. on Wednesday said the rate at which its customers defaulted on credit card balances rose in January, after a drop the prior month.
DEFAULT: Capital One wrote off $189 million, or 4.08 percent of balances on an annualized basis, last month, up from 3.98 percent in December. The rate remains significantly below the 6.79 percent charge-off rate a year ago.
LATE PAYMENTS: Payments on 3.78 percent of balances were delinquent, or late by 30 days or more, up from 3.66 percent in December. A year ago, the delinquency rate was 4 percent.
PEAK RATES: Capital One's worst month for charge-offs came in March 2010, when they hit 10.87 percent. Card companies typically write off loans after they are six months past due. Defaults have hovered around 4 percent since July.
Delinquencies reached their highest point in January 2010 at 5.8 percent. The figure is an indicator of what to expect for defaults in coming months.
Shares of Capital One Financial Corp. rose $1.33, or 2.8 percent, to $49.31 in morning trading. The stock was boosted by news that the Federal Reserve approved the McLean, Va.-based bank's $9 billion acquisition of ING Direct late Tuesday.
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