NEW YORK (11/30/11)--Declines in credit card debt and in the number of open credit accounts could mean banks are closing delinquent accounts, Bill Hampel, chief economist at the Credit Union National Association, told CNNMoney Tuesday in his analysis of consumer debt.
The article discussed how third-quarter consumer borrowing declined slightly because consumers continue to whittle away at their debt burden as they confront a troubled economy.
Third-quarter credit card debt dropped to $693 billion--a marginal change from second quarter--while the number of open credit card accounts declined 23%, falling by 6 million from its peak in 2008, CNN said.
Those figures indicate that banks may be shutting down delinquent accounts, Hampel told CNN.
"I suspect that accounts are mostly the behavior of lenders as opposed to the borrowers, because they could not collect anymore," Hampel added.
The article noted that the number of credit inquiries increased, indicating a "strong demand for credit."
To read the article, use the link.