According to a recent report from FICO, many professionals in the payment processing sector believe that the number of delinquencies on credit cards will rise in the future as the recovery continues to struggle to gain momentum.
The survey from the Fair Issac-owned group revealed that four out of 10 of risk managers believed that the number of defaults would increase over the next sixth months. The research also revealed that 49.8 percent of respondents thought that the average balance carried by consumers would increase.
“The latest credit trends data clearly indicates a continuation of increasing numbers of bankcard originations and higher new bankcard credit limits,” Michael Koukounas, Equifax senior vice president, special client services, said in a press release. “While bankcard origination numbers are still far from their prerecession levels, bankcard delinquency levels have actually declined to below prerecession levels,
Discover made headlines in recent days when it came to clients with the inability to pay. The company said that loans deemed uncollectable fell to 3.5 percent in August from 8 percent during the same time last year.Back To Blog