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Unearned Discount

   Also found in: Acronyms 0.01 sec.
Unearned Discount
A finance charge a lender assesses at the beginning of a loan, but only recognizes as income gradually over the loan's life. In accounting, the unearned discount is listed at first as a liability on the lender's balance sheet, but is slowly recognized as income.


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An unearned discount here, a mispriced product there, erroneously providing free shipping when it's not called for in the contract, a wrong tax code--these types of incidents add up and, worse, are frequently repeated.
90% of loans, net of unearned discount, at both dates.
27 billion, loans, net of unearned discount, of $8.
 
 
 
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