Valley credit-card delinquency rates average about 2%

STAFF REPORT

The Mahoning Valley has an average credit-card delinquency rate of about 2 percent, according to figures released Wednesday by Sen. Sherrod Brown.

The Democrat from Avon Lake had a news conference Wednesday with Ohio Attorney General Richard Cordray to promote passage of a credit-card reform act he supports.

Brown released these delinquency rates obtained from the Federal Reserve Bank of New York: Mahoning County, 1.91 percent; Trumbull County, 2.1 percent; and Columbiana County, 2.17 percent.

The rates show accounts that are at least 60 days past due.

Three Ohio counties had delinquency rates of at least 3 percent, with Vinton County in southern Ohio being the highest at 3.18 percent.

The only county with a delinquency rate of less than 1 percent was Mercer County in western Ohio. Its rate was 0.73 percent.

Brown and Cordray are supporting efforts to limit increases in interest rates and fees charged by credit card issuers.

Brown said he expects the Senate to vote this week on the Credit Card Accountability Responsibility and Disclosure Act, or CARD Act. It already has passed the House.

The bill is backed by consumer groups such as the Consumer Federation of America and Consumers Union but opposed by banks and business groups.

The bill would prohibit applying rate increases retroactively to existing balances and boost consumer disclosures.

It also would limit some fees and interest charges and create new requirements for card issuers looking to extend credit to people under 21. The bill would also make it easier for gift-card recipients to use the cards.

Opponents say fewer consumers would receive credit under the bill and that it would lead to a contraction of credit and higher prices, which would ultimately hurt consumers and small businesses.