The two largest banks in the US are declaring a loss on $4.5 billion in debts that customers are unable to pay. 6park.com
JPMorgan Chase says its net charge-offs, which are debts that the bank does not expect to receive, hit $2 billion in the first quarter of this year, reports Reuters. 6park.com
That’s nearly twice the amount of unrecoverable debt compared to the same quarter last year. 6park.com
Meanwhile, Bank of America reported $1.5 billion in net charge-offs, a surge from $807 million a year prior. 6park.com
BofA says those losses stem mainly from credit card debt that will likely never be paid.