fbpx
Connect with us

National

Bank of America, JPMorgan Chase Agree to Erase Debts From Credit Reports After Bankruptcies

Published

on

Bank of America’s headquarters in Charlotte, N.C. (Chuck Burton/Associated Press)

Bank of America’s headquarters in Charlotte, N.C. (Chuck Burton/AP Photo)

 

(New York Times) – 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.

The move is a victory for borrowers whose credit reports have been marred as a result of the reported debts, imperiling their job prospects and torpedoing their chances of getting new loans.

The change by the banks emerged this week in Federal Bankruptcy Court in White Plains, where the two banks, along with Citigroup and Synchrony Financial, formerly GE Capital Retail Finance, face lawsuits accusing them of deliberately ignoring bankruptcy discharges to fetch more money when they sell off pools of bad debt to financial firms.

READ MORE

SIGN UP TO RECEIVE NEWS UPDATES IN YOUR INBOX


Sign up to receive the latest news in your inbox

* indicates required

Like BlackPressUSA on Facebook

Advertisement

Advertise on BlackPressUSA

advertise with blackpressusa.com