Discover late payments at lowest level of 2010

By Associated Press
Posted Nov. 15, 2010 at 4:39 p.m.

Write-offs of uncollected Discover Card balances and late payments both fell in October to their lowest levels of the year.

In a regulatory filing Monday, the Riverwoods, Ill.-based credit card company said it wrote off $115.5 million, or 6.83 percent of balances, in October, down from $121 million, or 7.15 percent, in September.

Card companies typically write off loans after they’re 180 days past due. Discover’s charge-off rate peaked in February at 9.11 percent.

Discover said its rate of payments that were 30 days or more past due fell to 4.34 percent in October from 4.41 percent in September, the ninth straight month of decline. The late payment rate topped out 5.55 percent in January.

The improvements at Discover reflect continued movement toward lower overall credit card debt nationwide. Federal Reserve statistics show that total revolving balances for consumer credit, which is mainly credit cards, dropped in September to their lowest point since May 2005.

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