The Finance Owl

Banks – Loans – Mortgages – Money

Bank of America Credit Card Loss

Posted by theaccountant October - 19 - 2009 - Monday

Bank of America Credit CardsBank of America (BofA) do not appear to be out of the credit woods yet.

Bank of America, one of the largest US banks, appears to have posted financial results that  have not met many investors’ expectations. It seems that the bank has held the results fairly close to it’s chest, which has resulted a perceived mismatch between investors’ expectations and actual results.

The Bank of America’s Global Card Services, which is a key US provider of BofA credit cards, appears to have been one of the key drivers of the large losses posted. It appears that the bank’s credit card section has suffered a US$1 billion loss. Co-incidentally this is also roughly the amount which the Bank of America profits missed many investors’ expectations by.

The bank’s global card services division has indicated that this has been caused by levels of failed repayments and credit driven bankruptcies. The Bank of America’s senior management have apparently been indicating that failures on credit card repayments may now be showing some signs of leveling off. Time will tell if this is indeed a green shoot to the credit card market, or just another false dawn.

Related posts:

10 Responses to “Bank of America Credit Card Loss”

  1. Dyan Minnich says:

    The credit card is still one of the most popular methods of payment but could be replaced increasingly by Paypal & Co. As a result of Paypal’s security advantages it may be better to use this more in the future.

  2. Nolan Rintharamy says:

    In my opinion, the greatest just one to experiment with is CCCS (Purchaser Overall credit score Counseling Providers). The web site is It happens to be a non-profit organization, and is portion with the Greater Business enterprise Bureau. I’m exploring to carry out exactly the same as you, below soon. I was a consumer debt collector for two years, and basically CCCS was the most commonly chosen by debtors/customers.

  3. OlinC says:

    Thanks for the advice on credit repair on your web-site. Some tips i would offer as advice to people is to give up the actual mentality they will buy currently and fork out later. Like a society all of us tend to make this happen for many factors. This includes family vacations, furniture, and also items we wish. However, you should separate the wants out of the needs. While you’re working to fix your credit score actually you need some sacrifices. For example you possibly can shop online to save money or you can look at second hand stores instead of expensive department stores to get clothing.