SOURCE: MarketResearch.com

MarketResearch.com

June 15, 2009 09:08 ET

Credit Card Charge-Offs Expected to Rise 30% in 2009

ROCKVILLE, MD--(Marketwire - June 15, 2009) - MarketResearch.com has announced the addition of TowerGroup 's new report "Revitalize the Credit Card Pre-Charge-off Collection Process and Improve the Bottom Line," to their collection of Banking & Financial Services market reports. For more information, visit http://www.marketresearch.com/redirect.asp?progid=67618&productid=2222348

Based on current bank card delinquency trends, TowerGroup expects that 2009 net charge-offs for Visa, MasterCard, American Express US, and Discover Card US could exceed $71 billion (USD), which would be more than a 30% rise from 2008.

Bank card profits will improve, credit card delinquency rates will decline, and net charge-off trends will reverse if credit card issuers enhance the pre-charge-off collection process.

Improvements to technology and process can help card issuers reduce operating expenses, but an investment in qualified collectors provides a larger return to the bottom line.

TowerGroup estimates the cost to replace one bank card customer ranges from $160 to over $200, and issuers that work with their customers through this difficult economic period will retain those customers for life.

Credit card issuers' collection systems have evolved from basic production platforms to integrated multichannel communication and management systems that use empirically based scoring solutions for their collection strategies.

Topics covered in the report include...
Background
Business Practices That Impact the Credit Card Net Charge-off
Potential to Improve Profits by Enhancing the Pre-Charge-off Collection
Process
Components and Benefits of an Effective Pre-Charge-off Collection Process
Personnel Capacity Planning
Summary

For more information visit http://www.marketresearch.com/redirect.asp?progid=67618&productid=2222348

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