Capital One credit-card defaults rise in June

CHARLOTTE, N.C. - Capital One Financial Corp. said Wednesday that defaults on U.S. credit cards rose in June, but delinquencies slowed for a fourth straight month.

In a regulatory filing, the McLean, Va.-based company said the annual net charge-off rate, or the percentage of loans the company believes won't be repaid to total managed loans, rose to 9.73 percent from 9.41 percent in May.

The rate for loans at least 30 days delinquent improved for a fourth straight month. The delinquency rate fell to 4.77 percent from 4.9 percent.

In international card operations, the charge-off rate fell to 9.26 percent from 9.77 percent in May, while the delinquency rate was unchanged at 6.69 percent.

In Capital One's auto-loan unit, the charge-off rate rose to 3.89 percent from 3.62 percent. The delinquency rate climbed to 8.89 percent from 8.59 percent in May.

Capital One issues MasterCard and Visa credit cards. Like nearly all lenders, Capital One has seen defaults on its cards spike as rising unemployment and shrinking personal wealth hinder consumers' ability to pay off their debts.

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