Canadian credit card delinquencies rising
Tuesday, February 3rd, 2009
Buckle up for phase two.
Canadian Press
February 3, 2009
Canadian credit card issuers saw a sudden upward jolt in delinquencies late last year and they are getting tougher to avoid writedowns like those that have afflicted the U.S. financial system, Deloitte consultants report.
“Many companies loosened standards in recent years – and many will suffer higher credit losses in the months ahead,” the study released today says.
It notes that “with Canadian consumers increasing their debt-to-disposable-income ratios to more than 130 per cent, a rate currently higher than that of the U.S., Canadian issuers face new risks.”

