Capital One Charge Off Numbers Drop
Capital One Financial Corp. recently announced charge offs for U.S. customers fell, which may be a promising sign for the economy.
In March, the company reported a charge off rate of 5.87 percent, which is lower than February's numbers of 5.91 percent, the company said in its monthly report.
Rates for 30-day delinquencies showed positive progress, as March numbers stood at 3.59 percent, compared to February, when the figure was 3.83 percent. Auto loans specifically showed a drop in delinquencies, as these fell from 6.51 to 6.11 percent.
Capital One's financial standing has improved overall, as profit for 2010's fourth quarter was 85 percent higher than previous periods, but the company is still concerned that it may sustain $1.1 billion losses on mortgage buyback claims.
The progress of charge offs and delinquencies may be a good sign for the overall credit card debt problems in the United States. In the wake of the recession, consumers are starting to get their financial situations under control.