dcsimg Dash for Bankruptcy Costs Discover Over $200 Million - indexcreditcards.com

Credit Card Calculators

How long will it take to pay off my credit card?

In the News
  • "As comprehensive a list as you'll find of all the credit card offers on the table now."

Dash for Bankruptcy Costs Discover Over $200 Million

by Peter Andrew
Dash for Bankruptcy Costs Discover Over $200 Million

NOTE: To offer our weekly summary of credit card rates, Credit Card Monitor, in your publication or on your Web site, please contact syndicate@indexcreditcards[dot]com.

Morgan Stanley announced Wednesday that its Discover Bank division will see pre-tax charges in the fourth quarter of fiscal 2005 increase by $200 to $250 million over those experienced in the third quarter. Discover blames the charges on a rush of personal bankruptcies declared to beat an October change in bankruptcy law.

Federal bankruptcy legislation passed earlier this year makes it more difficult for individuals declaring bankruptcy to be completely shielded from creditors. While this promises to help credit card companies recoup more money in future bankruptcies, Discover and other credit card issuers are taking a short-term hit thanks to the many consumers who rushed to beat the October 17th deadline.


Disclaimer:The information in this article is believed to be accurate as of the date it was written. Please keep in mind that credit card offers change frequently. Therefore, we cannot guarantee the accuracy of the information in this article. Reasonable efforts are made to maintain accurate information. See the online credit card application for full terms and conditions on offers and rewards. Please verify all terms and conditions of any credit card prior to applying.

This content is not provided by any company mentioned in this article. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any such company. CardRatings.com does not review every company or every offer available on the market.

Published  (Modified )

Share this article with: