Bank of America and JPM Chase Agree to Erase Debts From Credit Reports After Bankruptcies

[gdale6]

http://www.nytimes.com/2015/05/08/business/dealbook/bank-of-america-and-jpmorgan-chase-agree-to-eras...

Two of the nation’s biggest banks will finally put to rest the zombies of consumer debt — bills that are still alive on credit reports although legally eliminated in bankruptcy — potentially providing relief to more than a million Americans.

Bank of America and JPMorgan Chase have agreed to update borrowers’ credit reports within the next three months to reflect that the debts were extinguished.

[MarineVietVet]

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@gdale6 wrote:

http://www.nytimes.com/2015/05/08/business/dealbook/bank-of-america-and-jpmorgan-chase-agree-to-eras...

Two of the nation’s biggest banks will finally put to rest the zombies of consumer debt — bills that are still alive on credit reports although legally eliminated in bankruptcy — potentially providing relief to more than a million Americans.

Bank of America and JPMorgan Chase have agreed to update borrowers’ credit reports within the next three months to reflect that the debts were extinguished.

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I hope this turns out as well as it's proposed.

[hudsons1]

Here is what I would like to see.. Satisfied tax liens exiting a credit report. If you live in Georgia, and enter into an installment program to pay income tax, the state will place a tax lien on you. They will release the lien when the installment program is payed off, but the report still shows it as a judgement.Even though the account was never in default.

[RobertEG]

Which means they will update the debt balance to $0, as it should be.

The more interesting part of the article, which can only be taken on faith since no cite was provided in the article of any actual court documents or agreements, and thus what has been "agreed" is only the interpretation of the reporter, is that they will go back for all debt sold since 2007 and delete prior derog history to further eliminate any possible perception that the debt remains delinquent.

Hopefully, a settlement agreement will be published so that details are not filtered by a reporter.....

[printosaur]

Synchrony Bank, formerly GE Capital, said it agreed in December to correct credit reports that show debts extinguished in bankruptcy. It faces similar accusations to those leveled at Chase and BofA.

Story is here: http://goo.gl/lVWUtm

[sjt]

My question is why they were allowed to report these debts in the first place.

[DaveInAZ]

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@gdale6 wrote:

http://www.nytimes.com/2015/05/08/business/dealbook/bank-of-america-and-jpmorgan-chase-agree-to-eras...

Two of the nation’s biggest banks will finally put to rest the zombies of consumer debt — bills that are still alive on credit reports although legally eliminated in bankruptcy — potentially providing relief to more than a million Americans.

Bank of America and JPMorgan Chase have agreed to update borrowers’ credit reports within the next three months to reflect that the debts were extinguished.

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From that NY Times article:

Under federal law, once a borrower has erased a debt in bankruptcy, banks are required to update the credit reports to indicate that the debt is no longer owed, and remove any notation of “past due” or “charged off.”

- I had a bunch of those, showing 60-90-120 late & then CO (charge off) after filing, and some even showing CLS (closed) in 9/2010 when I filed, but then resumed late & CO reporting after that, mostly from Chase & Citi & the 1 BoA account. I disputed every one saying that reporting late after I filed was an attempt to collect a debt under automatic stay jurisdiction of a U.S. Federal BK Court. TU & EQ promptly cleaned them all up, while EX refused. As a result I get an "A" for payment history on TU & EQ with no lates, while I get an "F" on EX w/30 some lates. Hopefully this will get EX to clean up their act.

[Marvelousone]

Question? BK opened in 05/20019 at the same time I stopped payment to cards for BofA, Citi and Chase, I continue to be hit all these years later as a negative of 5 items which is holding my score down on all three reporting agencies, they do say included in BK but I'm wondering has anyone had those removed?  I haven't had a late in over 5 years on any account, I have small credit lines Capitol One $3500 and Capitol One (second one $750)  I do have a mortgage and a car loan but there are people telling me to get more credit cards to increase my score?

TU 689

EX 698

[gdale6]

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@Marvelousone wrote:

Question? BK opened in 05/20019 at the same time I stopped payment to cards for BofA, Citi and Chase, I continue to be hit all these years later as a negative of 5 items which is holding my score down on all three reporting agencies, they do say included in BK but I'm wondering has anyone had those removed?  I haven't had a late in over 5 years on any account, I have small credit lines Capitol One $3500 and Capitol One (second one $750)  I do have a mortgage and a car loan but there are people telling me to get more credit cards to increase my score?

TU 689

EX 698

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IIBs will be gone at the 7 year mark of your BK filing. You typically need 3 revolving bankcards and 1 store card to help drive your FIco. You should only apply for cards that you will actually use.

[crrredit]

Anyone heard any more news on this?