American Express says payment defaults slowing

posted: 41 DAYS 14 HOURS AGO

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NEW YORK -American Express Co. said Thursday its rate of losses from credit card loans continues to slow.

The write-off rate on credit card balances was 8.4 percent in September, down from 9 percent in August and 9.2 percent in July.

The preliminary rate for the third quarter was 8.9 percent, down from the second-quarter rate of 10 percent.

Credit card loans are written off after consumers are delinquent on numerous payments.

A spokeswoman for the New York-based financial services company told The Associated Press in August that credit card losses were slowing, and that the chargeoff rate was expected to stay below 10 percent in the third and fourth quarters, after hitting the 10 percent mark in the second quarter.

The more upbeat forecast for the remainder of the year was based on improving early delinquency rates, spokeswoman Joanna Lambert said at the time.

In September, the percentage of loans at least 30 days past due was 4.1 percent — equal to its August level — and smaller than the 4.2 percent logged in July.

Shares of American Express fell 23 cents to $34.86 in afternoon trading. They've traded between $9.71 and $36.50 in the past 52 weeks.

2009-10-15 13:31:10