Capital One Sees Bad Credit Unsecured Personal Loans as Less of a Financial Concern in Q2
Posted on | July 23, 2010 | No Comments
Capital One recently reported that they were setting aside less money for bad credit loans, including bad credit unsecured personal loans, as customers are working hard to clean up their personal finances. Unfortunately, Capital One also reported that customers are still not borrowing as much as they were in the past.
Thursday after the bell, Capital One Financial reported a profit in the second quarter mostly due to the fact that they did not have to set aside as much money for loan defaults. During the financial crisis and much of the recovery many financial institutions were setting aside millions and even billions to cover bad credit loan defaults.
In trading on Friday, Capital One was down almost 3% as the company continues to adjust to the new credit card regulations. The new Credit CARD Act limits the ability of credit card companies to charge excess fees and increase interest rates at any time.
Capital One Financial set aside $723 million for credit card and bad credit unsecured personal loan charge-offs. That amount is 23% less than the $934 million that was set aside in Q2 of 2009. With borrowers still struggling to pay off loans it means that they are even less likely to borrow more money in the near future.
Author: Mike Garner
Tags: Bad Credit Unsecured Personal Loans > capital one bad credit > capital one bad credit loans > capital one bad credit unsecured personal loans > capital one credit card > capital one financial
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