Consumer credit-card debt is officially caught up in the crunch.

On the same day that Capital One Financial announced an earnings shortfall attributed to late payments on cards and auto loans, American Express delivered similarly dismal news.

The credit-card giant Amex lowered its fourth-quarter expectations based on higher delinquencies and loan loss provisions. It also issued a more cautious outlook for 2008.

After taking a $440 million charge during the quarter, Amex expects to earn 70 to 72 cents a share, which is significantly lower than the mean Wall Street estimate of 87 cents a share. In the fourth quarter of 2006, the company earned 73 cents a share.

“While overall Cardmember spending continued to be relatively strong and we benefited from a focus on the affluent sector of the market, we did see some negative credit trends among U.S. consumers during December, particularly in California, Florida, and other parts of the country most affected by the housing downturn," said chief executive Ken Chenault in a statement.

Based on slower consumer spending and higher delinquencies in December, the company has embraced a weaker outlook for this year. It expects to grow worldwide business by 8 to 10 percent, which is slower than normal for American Express.
 
“In line with our cautious outlook for 2008, we plan to curtail certain discretionary expenses and hold full-year marketing and promotion expenses somewhat below 2007 levels," Chenault said.

Shares of American Express fell 6 percent in after-hours trading.