JPMorgan Chase writes off fewer credit card loans in April; delinquency rate also falls

Chase credit card charge-off rate falls in April

NEW YORK — JPMorgan Chase said Monday it wrote off fewer credit card loans as uncollectable in April, and late payments on remaining cards also fell, a sign that borrowers continue to be able to make more of their payments on time.

The New York-based bank said net credit losses dipped to 9.03 percent in April, from 9.51 percent in March and 9.21 percent in February. Card companies write off loans that are 180 days past due, when it’s assumed the balances can’t be collected.

In the past year, the industry has written off a record amount of loans as customers struggled to pay off debt. The charge-off rate dipped slightly to 9.5 percent in the fourth quarter of 2009, according to the Federal Reserve, down from a high of 10.17 percent in the third quarter. That compares with a rate of 3.8 percent in the second quarter of 2007, before the recession began.

With the economy stabilizing and most bad loans off the books, the rate of late payments, an indicator of future default, also has been easing. Some observers attribute at least some of the drop to federal credit card regulations that took effect in February.

Chase said its rate of payments late 30 days or more was 4.4 percent in April, down from 4.51 percent in March and 4.67 percent in February.

With broader markets down, JPMorgan Chase shares slid 68 cents to $39.21 in afternoon trading.