Credit card late payments back on the rise

[OhioChick]

Source: CNN Money

October 19, 2011: 6:20 AM ET

NEW YORK (CNNMoney) -- After a couple years of buckling down and making on-time payments, consumers are starting to be a tad less responsible with their credit cards again.

Some of the country's major credit card issuers posted small increases in the number of credit card payments that were at least 30 days late in September, following a steady decline in delinquency rates since early 2009.

"Any time delinquencies go up I think it's a cause for concern, especially since we've seen a pretty good trend in declining delinquency rates," said Bill Hardekopf, CEO of credit card comparison site LowCards.com. "It looks like a signal that consumers are struggling."

Late payments among Capital One (COF, Fortune 500) customers have been rising slightly since June, when its delinquency rate rose to 3.33% -- from 3.32% in May. But last month, the delinquency rate jumped significantly -- to 3.65%, from 3.43% in August and 3.37% in July.

Read more: http://money.cnn.com/2011/10/18/pf/credit_card_late_payments/

[Dover]

1. "concern"? Oh bull. CC companies thrive on those late fees.

And if you pay each month they much prefer you pay minimum so they can charge exorbitant interest.
Tear up your credit cards if you want to send a definitive message.

[SoapBox]

2. Kind of off topic but...

Speaking of late fees...I'm SO pissed.

Payment for our ATT bill, for home land line and DSL service, used to be mailed
to an address in CA (I'm in SoCal)...then it changed to TX...and NOW it goes
to Carol Stream, IL.

The last payment took NINE freak'n days to get posted, from the date that I mailed it...thus, late charge.

I called and screamed and yelled and ranted...and they would NOT take it off. She simply said that I
should mail it sooner (NINE days was not enough????) or let them auto-draw it from my checking (NOT!).

This whole thing is a scam...give me a Post Mark By Date, like the IRS, and that should suffice.

Scam...Scam...Scam...on late fees.

[david_vincent]

4. That's interesting, SB:

My Toyota Financial Services payment also goes to Carol Stream, Illinois. There must be some kind of payment processing center there. And, they're always ridiculously slow to post the payment. I can't believe it takes a week or more for mail to get to Illinois. They sit on it for several days until they finally "get around" to posting it, or else it's flat out maliciousness, deliberately trying to make you incur a late fee.

[SoapBox]

6. p.s. to this...

Now that I think of it, we had a business payment that went to that address
and had the same problems back then.

Is Carol Stream, IL the new South Dakota, with contract payment processors located there?

The whole thing is outrageous.

[sarcasmo]

15. GMAC was like that, trying to force you to set up auto payment.

Held a check on purpose that we knew we sent out. The loan was switched to the credit union, ASAP.

[DaveJ]

7. You realize electronic withdrawal does not have to be "Auto"

You can pay your bill online once, or whenever you wish, without them automatically withdrawing every month. You can do this on ATT's site and with most bank websites too.

(I assumed you knew this, but just in case.)

I do not do anything by mail, if I can help it, I really do not trust paper, the same way some do not trust computers.

[Dont_Bogart_the_Pretzel]

10. That's what I do. These days my bank balance is always low, so I really can't afford to go "Auto"

[Pacifist Patriot]

12. Me too.

[Pacifist Patriot]

13. I'm surprised a bill processing company is not listed as one of the top employers.

A lot of billing gets processed there.

I do find it mildly interesting in a not really ironic, but not surprising sort of way. The Christian publishers Tyndale House and Christianity Today International are based in Carol Stream. Neither has anything to do with the other. I'm just quirky I suppose.

[RUMMYisFROSTED]

3. When did they leave?

:shrug:

[ixion]

5. "less responsible" or just broke?

I'm guessing the latter.

[CarmanK]

8. People paying mtg instead of credit cards! Credit agencies hurt!

It doesn't really matter. People were trying to keep up credit card payments all the while they were bilking us not only with late fees, but with USURIOUS finance charges. The govt failed to protect us from the Wall street predators, and they took advantage. Last year, my son died, I was late and they offered no help and made sure that the lates were on my credit reports, the bunch of them. I intend to pay my just debts, but I have to get my priorities in order. It is easier to get a meal than it is to get a safe roof over my family, so I now pay the mtg, the electric, the phone and divvy up the rest the best I can. Even our credit union shafted us this time around. What is really disgusting, you build up relationships, but when things get rough, the banksters have amnesia for all the years we were good customers. So, I say. It is time to tear up the credit cards/negotiate lower pmts on the balances. they will cancel your cards and hit your credit report. But, there will be so many of us, that the banks will find a way around it, if it means another revenue stream for them.

[RebelOne]

9. I will never have another credit card.

Credit cards got me in trouble several years ago, and I had to declare a Chapter 13 bankruptcy. Finally, 3 years later, after all debts were paid, I was discharged. So, if I cannot afford to pay cash for something, I just won't buy it.

[SkyDaddy7]

11. My Grandfather use to tell me that all the time!

He grew up in the depression so he knew what he was talking about! If he would have been alive to see this latest crash he would have been enraged!

He is the one who sat me down when I got out of the military & told me why it was so important to vote Democrat across the board...I listened!

[Pacifist Patriot]

14. I am 15 months away from being credit card free.

I hope!