Capital One’s card defaults weigh on sector

CHARLOTTE, N.C. (AP) - A sharp increase in credit-card loan losses at Capital One Financial does not bode well for other big consumer lenders.

The MasterCard and Visa credit card issuer said Wednesday that its U.S. and international credit card defaults rose in March.

While not unexpected, the news from the McLean, Va.-based company suggests that the deteriorating economy and sharp rise in unemployment are weighing heavily on the sector. Nearly all lenders are seeing more customers stop making monthly payments.