Capital One credit-card defaults rise in May

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City of Industry, CA --(www.USEquityNews.com)-- 06/15/2009 - Credit Services industry alert provided by U.S. Equity News. NEW YORK (AP) -- Capital One Financial Corp. said Monday that defaults on U.S. credit cards rose in May, but delinquencies slowed for a third 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 9.41 percent from 8.56 percent in April.

Like in April, the May results reflect a change in the way the company processes bankruptcies. Due to an increase in volume in bankruptcies, Capital One extended the processing time so that bankrupt accounts are charged off within 30 days, instead of the previous 2- to 3-day processing time.

The change improved the charge-off rate by 50 basis points, the company said. Without the new processing guidelines, the charge-off rate would have been nearly 10 percent.

The rate for loans at least 30 days delinquent improved for a third straight month. [Read the full article]

EZCorp (EZPW) cut FY guidance from $1.51 to $1.42 (average) which, still represents 16% - 19% earnings growth YOY. The company cited weakening demand for loans as well as sales of pawned merchandise. Because a customer cannot get a payday loan without a job, the nation's 9.4% unemployment rate is finally taking a toll on PDLs. And since consumer spending is off, items that might normally have sold from the local pawn shop aren't moving as quickly. Although these trends are somewhat offset by EZ's ability to scrap gold at all-time highs, that won't save the day. The stock tumbled to $10.99, giving it a current p/e of 8. EZ has always been cheap, but it's outrageously cheap at this price. The market usually recognizes this, as previous drops to this range have not lasted very long. I added to my position last Friday. My stragegy with EZ has been to hold a half-position long, add at attractive prices, and sell calls against half my position at $12.50 or $15. [Read the full article]

NEW YORK, June 15 /PRNewswire/ -- Working families and individuals have always turned to Amalgamated Bank for affordable and competitive checking and savings accounts, CDs and IRAs, consumer loans and home mortgages. Now workers can find an even greater range of home mortgage options at the Bank. America's Labor Bank is launching a new alliance with PHH Mortgage to provide customers with a comprehensive range of home financing services from pre-approval letters to loan origination and loan servicing.

"As a progressive bank, our customers have always depended on us for affordable banking services," said Derrick D. Cephas, President and Chief Executive Officer of Amalgamated Bank. "By joining with PHH Mortgage, one of the largest and most experienced home financing companies in the nation, we now have the capability to offer members of the Amalgamated family a wide array of mortgage programs. [Read the full article]

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