Discover's Delinquency Rates Spike

[ejbarraza]

[CreditCuriosity]

Hopefully Cap1 hasn't settled on the purchase price yet although suspect Cap1 losses to look similar if overlayed as a percentage or most lenders for that matter.  

[FlaDude]

So is there any reason to believe that this is specific to Discover or are most lenders likely seeing the same?

[CorpCrMgr1]

Thank you for posting. Interesting!

[TrapLine]

Some interesting posts. For purposes of science it would be insightful to know how other financials see the losses?

As an old customer of Discover (1986), I have found them to be there for the customers over the years and am saddened by what the future holds for them. In reading around a change in how they do business will likely be required to survive. As consumers it may affect our relationship with them.

For myself, there will be no migrating to Cap1. Eight years of their banking methology is all I will consume.

[MarkintheHV]

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@FlaDude wrote:

So is there any reason to believe that this is specific to Discover or are most lenders likely seeing the same?

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My guess would be that this probably tracks along with other issuers who have approval criteria being on the lax side.  I think all of them are up, just the ones with stricter criteriea are probably are a little lower.

[CreditPoor]

Lol, maybe it's because they've 4506c everyone to death and people are like forget it. They figure Cap1 is buying it and are generally forgiving 

[FicoMike0]

This 4506c,wa chu talk'in 'bout, Willis?

[tricie17]

I think that this has more to do with people holding on to too many cards (debt) during an extremely hard economy and not being able to maintain those cards. And the supposed merger.

[pizzadude]

I suspect this trend is affecting all banks / lenders, although as mentioned above sub-prime and lower tier lenders probably are harder hit.

Interest rates increases are likely a contributing factor also.