Table: Aggressive Accounting?

One analyst claims Household's policies understate losses and delinquencies. The company disagrees

HOUSEHOLD IS ACCUSED OF:

-- Rolling over late loans by adding missed payments to ends of loans, thus masking delinquencies

-- Delaying recognition of charge-offs to boost earnings Moving loans from its bank subsidiary to minimize need for reserves

-- Cutting on balance sheet reserves, though its portfolio is riskier

HOUSEHOLD REPLIES:

-- The practice is an industry norm, and collection rates improve after loans are "re-aged"

-- Charge-off policy follows industry standards closely

-- Applying bank regulatory rules would barely increase the amount of charge-offs

-- Total reserves are at the highest level in company history

Data: BusinessWeek, Household International Inc.

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