Bank Profits Up As More Make Credit Card Payments

NEW YORK (AP) -- The nation's top credit card companies are seeing a boost to their bottom lines as consumers are getting better about paying their bills.

Five top card issuers on Friday said the rates at which their customers defaulted on accounts fell in June. Bank of America Corp. reported the biggest drop, with JPMorgan Chase & Co. and Discover Financial Services also showing significant improvement.

Late payments are also down. Only Capital One Financial Corp. saw an uptick in payments late by 30 days or more, and that increase was tiny.

The impact of the improved payment habits was reflected in banks' second-quarter financial results. Citigroup Inc., JPMorgan, Capital One and Discover have all added to their bottom lines by reducing the amount they set aside to cover defaulted cards.
(Copyright 2011 by The Associated Press. All Rights Reserved.)

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  • by Shine Location: E. N.C. on Jul 17, 2011 at 10:48 AM
    No - it is not legal except your congressmen and representatives sit on bank boards and pass these laws that protect them and bail them out.... while of course they are receiving a salary from the designated banks for not showing up to the meetings - it is only the vote that matters. This has been a centrifical rotation forever.
  • by Shine Location: E. N.C. on Jul 17, 2011 at 10:43 AM
    The banks got into the 'plastic' biz along time ago. They got in trouble more than once and the federal gov. bailed them out more than once. Borrow money at 2% on the Federal Reserve and charge 22% knowing who you sent the 'pre approved' cards to that you would up front not collet half.. Write it off - yes..... and so an increase in the return. why is this even legal?

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