Bank of America said that its rate of charge offs, or credit card debt 90 days or more behind that it now considers uncollectable, fell sharply, from 11.72 percent in August to just 9.98 percent in September, according to a Businessweek report. It was the first time the company's default rate slipped below 10 percent in months, and was the lowest rate observed all year.
However, its delinquency rate, comprised of all credit card debt that is 30 days or more behind, crept up slightly in September, from the 5.68 percent observed in August to 5.71 percent. The Businessweek report said this was the first time the delinquency rate for the lending giant increased so far in 2010, and it considers this statistic to be an possible indicator of future charge offs.
Most major lenders, such as Citibank and Discover, reported declines in both delinquent and defaulted credit card debt in September.