* Bank of America credit card defaults fall to 14.25 pct

* American Express credit card chargeoffs down to 8.4 pct

* Most credit card companies report higher delinquencies

* Analysts see defaults at record highs in coming months (Recasts; adds Citigroup data, comments from Citigroup CEO, analyst comments; updates stock prices)

By Juan Lagorio

NEW YORK, Oct 15 (Reuters) - Most of the largest U.S. credit card companies reported defaults fell in September as consumers used tax refunds and other economic stimulus proceeds to lower debts, but late payments rose, suggesting more troubles ahead in an already battered industry.

The decline in defaults from record highs last month reflected a contraction earlier this year of late payments.

But delinquencies, an indicator of future credit losses, resumed an upward trend in August in some companies and climbed more than expected in September, signaling bad loans will rise in coming months and will peak later than anticipated.

Credit card chargeoffs -- loans the companies do not expect to be repaid -- usually track unemployment, which rose to a 26-year high of 9.8 percent in September. The jobless rate is expected to top 10 percent by year-end.