Bank of America, Chase Hit Hard By Customer Bankruptcies
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Bank
of America, Chase Hit Hard By Customer Bankruptcies
Bank of America
and JPMorgan Chase & Co., like credit card giants Citi and
Discover before them, disclosed losses in the millions as the
result of increased bankruptcies. Thousands of consumers had
rushed to declare bankruptcy under more favorable terms before
a new bankruptcy law took effect, significantly increasing the
losses credit card companies would normally have to absorb.
Bank
of America expects an extra $400 to $500 million in chargeoffs
(losses due to unpaid balances) in the fourth quarter; JPMorgan
Chase expects $700 million more than in the third quarter, according
to quarterly reports the companies filed with the Securities
& Exchange Commission.
Published 11/10/05 (Modified 01/21/13)
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