Many credit card companies across the country have seen an increase in the rate at which they’ve written off delinquent credit card debt as irretrievable in recent months. But one company that issues cards for major retail chains actually reported a decrease in its charge off rate.
Alliance Data Systems, which controls credit card and loyalty rewards programs for chains like Ann Taylor, Victoria’s Secret and Pottery Barn, said that the rate at which it wrote off credit card debt as uncollectable declined in the second quarter of the year to 9 percent. That rate was at 9.8 percent for the same period of last year, and 9.4 percent for the first quarter of 2010.
Like most major lenders, Alliance also reported a drop in delinquencies. Payments that were 30 days behind or more dropped from 5.9 percent through June of 2009 to 5.4 percent for the same period this year.
However, those lenders have reported lower delinquency because they have written off those debts, whereas Alliance has managed to lower both delinquency and charge off rates.