Credit Card Debt

JPMorgan Chase, Wells Fargo, and Bank of America Lose $5,000,000,000 as Credit Card Delinquencies Surge

US banks are unloading billions of dollars in bad debt that they have given up on collecting, according to new numbers from the Federal Deposit Insurance Corporation (FDIC).

In its new Quarterly Banking Profile report, the FDIC says US banks reported $21.3 billion in net charge-offs in the second quarter of the year, due largely to credit card delinquencies and commercial real estate loans going bad.

This is the highest quarterly net charge-off rate since the second quarter of 2013 and 20 basis points higher than the same period last year. The main culprit: consumers struggling with higher interest rates and inflation.

The new numbers come as JPMorgan Chase, Wells Fargo and Bank of America individually disclose billions of dollars in collective net charge-offs in Q2.

  • JPMorgan Chase reports its net charge-offs reached $2.2 billion in Q2, up from $1.4 billion in Q2 of last year.
  • Wells Fargo reports its net charge-offs surged to $1.3 billion last quarter, up from $764 million one year ago.
  • Bank of America reports its net charge-offs hit $1.5 billion, up from $900 million year-over-year.

The FDIC says the total charge-off rate for US banks is now higher than the pre-pandemic average.

Click here to read more.

If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Foreclosures, Timothy Kingcade Posts

Dina Lohan Facing Foreclosure

Troubled mom of actress Lindsay Lohan is about to lose her home according to the Long Island Press. Lender JPMorgan Chase filed new court papers on August 28 to foreclose on her $1.3 million Merrick house. Court documents read, Dina “has failed to comply with the conditions of the mortgage by failing to pay portions of principal, interest or taxes, assessments, water rates, insurance premiums, escrow and/or other charges.”

This is not the first time the bank has been after Lohan’s home. According to court documents obtained by TMZ, JPMorgan Chase Bank filed documents in 2010 to foreclose on Dina’s Long Island home because she had fallen behind on payments. That time the bank ended up cutting a deal in which Dina agreed to a new payment plan that would prevent her home from being auctioned off. Sources close to Lindsay claim that she made Dina’s payments and then supplied her with more bailout money- $40,000.

Click here to read more on the latest drama surrounding Dina Lohan facing foreclosure.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.