April Charge-Off Rate Declines Again, Widening Gulf With Unemployment.(News)

Byline: Kate Fitzgerald

The average U.S. consumer credit card charge-off rate fell again in April, underscoring a noteworthy decoupling of the unemployment rate and the number of credit card accounts lenders deem uncollectible, Moody's Investors Service said in a May 23 report.

The average charge-off rate on consumer credit cards in April fell to 7.16%, down 19 basis points from 7.35% in March, according to Moody's, which last week predicted the rate would decline for April (see story). The data underscore the effects of card issuers continuing to clear out weaker borrowers' accounts while adding fewer new accounts to their portfolios, the firm said.

The …