JPMorgan Chase credit card losses down in July

JPMorgan Chase & Co. said Monday that the rate of losses on its credit card loans eased up in July.

Shares of the New York-based bank fell $1.20, or 2.8 percent, to $41.25 in afternoon trading amid sweeping declines in the broader market.

According to filings with the Securities and Exchange Commission, the rate of chargeoffs on Chase credit card loans improved to 7.92 percent in July from 8.04 percent in June. It was the second month in a row that defaults declined.

Credit card loans are charged off after consumers are delinquent on numerous payments and the company determines those loans won't be repaid.

The percentage of loans at least 30 days delinquent to total loans stood at 4.16 percent in July, down from 4.46 percent in June.

Other lenders, including American Express Co. and Discover Financial Services, also said Monday that losses in their credit card portfolios slowed last month, a sign that defaults may be stabilizing after months of increases as consumer struggled to pay off their debts amid the recession.