A series of regulatory filings on Wednesday showed that May payment rates for most of the biggest card issuers were down to rates seen before the economic downturn.
In the case of industry-leading American Express, the rate of payments late by 30 days or more is far better than before the crisis, at 1.6 percent of balances on an annualized basis for May.
JPMorgan Chase’s card division reported a rate of 2.66 percent, last seen in mid-2006. Discover Financial Services also posted its best rate in more than four years, 2.88 percent.
As Mercator also commented in the research note, issuer chargeoffs, on average, have come down dramatically but are still at elevated levels. These high charge-offs continue to sap resources from issuers that might otherwise be returning to aggressive issuing modes.