Bank Of America Default Rate Drops

Posted by Bill Crowley on March 16 2011 @ 8:05 am

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Bank of America customers are paying their bills at an increased rate. The credit card default rate for Bank of America has fallen to its lowest point since February 2009, showing that cardholders are starting to pay their bills on time.

The bank's uncollectible debt percentage during February was 8.84 percent, a decline from January, when the rate was 9.2 percent, Bank of America's regulatory filing said, according to Forbes.

Bank of America's credit card department reported the rate of late payments decreased to 5.09 percent from January, when it was 5.17 percent, the news source reported.

Other card companies had the same positive showing lately, a sign that Americans are starting to tackle their debt in increased numbers after the holidays.

Credit card companies usually write off loans that are more than 180 days overdue, as they pass the account to a debt collector to deal with the delinquent payments. The highest charge off rate for Bank of America, also known as uncollectible debt, was in August 2009, when the bank reported it was 14.53 percent, the news source said.

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New government regulations in place for consumers in need of debt relief for credit cards and other unsecured debts.

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