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Capital One credit card defaults rise in June
2009-07-15
NEW YORK (Reuters) - Capital One Financial Corp's (COF.N) U.S. credit card defaults rose in June as unemployment increased and Americans struggled to pay their debts, the company said on Wednesday. In a regulatory filing, Capital One said the annualized net charge-off rate for U.S. credit cards -- debts the company believes it will never collect -- rose to 9.73 percent in June from 9.41 percent in May. Capital One, one of the largest issuers of Visa and MasterCard branded credit cards, said credit cards at least 30 days delinquent -- an indicator of future loan losses -- fell for fourth straight month, to 4.77 percent from 4.90 percent. For U.S. auto loans, Capital One's charge-off rate rose to 3.89 percent in June from 3.62 percent in May, while the delinquency rate increased to 8.89 percent from 8.59 percent. In international operations, including Canada and Britain, the charge-off rate fell to 9.26 percent in June from 9.77 percent in May, while the delinquency rate was unchanged at 6.69 percent. Capital One shares showed no trading in premarket activity. The stock is down 27 percent in 2009. (Reporting by Juan Lagorio; editing by Derek Caney)
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