Write-offs of uncollectible balances fell for Discover Card in September as did late payments, as its customers continued to improve control of their debt.
Discover said in a regulatory filing Friday that its net charge-offs declined to $121 million, or 7.15 percent of total balances, in September, from 7.98 percent in August.
Card companies typically write off loans after they're 180 days past due, the point at which it's assumed the balances won't be paid.
In the past two years, the industry has written off a record amount of loans. By the April to June period, the charge-off rate for U.S. consumer credit cards was just short of 10.66 percent of balances, according to the Federal Reserve. That compares with 3.8 percent in the second quarter of 2007, before the recession began.
Discover said its rate of loans 30 days or more past due slipped to 4.41 percent in September, from 4.47 percent in August, the ninth straight month the company reported a decline. The delinquency rate is considered an indicator of future write-offs.
Shares of the parent company, Discover Financial Services of Riverwoods, Ill., slipped 16 cents to $17.50 in midday trading Friday, after earlier hitting a 52-week high of $17.94.
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