BOA & Chase agree to correctly report BK Debts.

[ICANHASMUNY?]

http://www.nytimes.com/2015/05/08/business/dealbook/bank-of-america-and-jpmorgan-chase-agree-to-erase-debts-from-credit-reports-after-bankruptcies.html?hp&action=click&pgtype=Homepage&module=first-column-region&region=top-news&WT.nav=top-news&_r=0

 

 

 

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.

The lawsuits accuse the banks of engineering what amounts to a subtle but ruthless debt collection tactic, effectively holding borrowers’ credit reports hostage, refusing to fix the mistakes unless people pay money for debts that they do not actually owe.

It is not the only pressure. Lawyers with the United States Trustee Program, an arm of the Justice Department, are investigating the banks, said several people briefed on the inquiry, about whether the banks are deliberately flouting federal bankruptcy law.

In an apparent, if oblique, reference to the inquiry, a lawyer for Synchrony Financial told the judge at a hearing this year that the lender was under “investigation” by the Justice Department.

 

[ICANHASMUNY?]

NY times Article from 2014

 

http://dealbook.nytimes.com/2014/11/12/debts-canceled-by-bankruptcy-still-mar-consumer-credit-scores/

[mrjuggalo9er]

The fact this had to be announced is why chase will never get a dime of money from me

[Second Chances]

"Without admitting any wrongdoing, lawyers for JPMorgan Chase and Bank of America agreed to ensure that bankruptcies were registered on credit reports. A lawyer for JPMorgan Chase, according to court documents, said that by August the bank would ensure that all debts discharged in Chapter 7 bankruptcy were correctly recorded."

 

Well, that's big of them. They are agreeing to follow the law.

[ICANHASMUNY?]

"Without admitting any wrongdoing, lawyers for JPMorgan Chase and Bank of America agreed to ensure that bankruptcies were registered on credit reports. A lawyer for JPMorgan Chase, according to court documents, said that by August the bank would ensure that all debts discharged in Chapter 7 bankruptcy were correctly recorded."

 

Well, that's big of them. They are agreeing to follow the law.

 

Yeah - maybe that's why the stockholders are protesting Demon's 7.4 mil bonus.....

[ICANHASMUNY?]

Ha ! found one of the cases - against GE Capital - GE tried to remove this to FAA ( arbitration ) and the BK judge denied it.

 

 

IN RE BELTON, Bankr. Court, SD New York 2014

 

 

 

To hold that, notwithstanding this reading of the Constitution, federal courts must, except for the reasons stated in section 10 of the FAA, do the bidding of arbitrators chosen on a piecemeal basis, without any tenure or salary protection (indeed, whose salary may be paid by only one of the parties) because Congress said so, boggles the mind.

 

I believe that the faulty logic actually lies in the foregoing decisions, and hope that, as was said of the Aethelred the Unready, having begun in cruelty (or more aptly, amour-propre), and moved on to wretchedness, they will be overturned in disgrace.

 

Until that happens, however, one cannot be assured that any ruling by an arbitration panel can be given the deference required by section 10 of the FAA, and instead must be subject to de novo review.

 

On the other hand, it should be clear from Stern that this Court has the power to determine by final order fundamental issues historically pertaining to the adjustment of debtor/creditor relations, 131 S. Ct. at 2620; see also id. at 2621 (Scalia, J., concurring opinion); and as noted, nothing is more fundamental to the adjustment of debtor/creditor relations than the enforcement of a debtor's discharge.

 

Therefore, for all of the foregoing reasons, I conclude that GE Capital's motion should be denied. Counsel for the debtor should submit a proposed order to chambers consistent with this ruling.

[joelbnyc]

I was just about to post this. It's on the NY Times website's front page, lead story. Here is the permalink

 

http://nyti.ms/1Il29yf

 

"The lawsuits accuse the banks of engineering what amounts to a subtle but ruthless debt collection tactic, effectively holding borrowers’ credit reports hostage, refusing to fix the mistakes unless people pay money for debts that they do not actually owe."

 

Huh i think that sums up about 75% of furnishers' business model...

 

Also BOA consumers could get one better, even if they have not filed bankruptcy. This piece is critical:

 

"Bank of America promised to go further, agreeing to fundamentally change the way the bank reports all the stale debts that are sold to financial firms. For all credit ­card debts sold since May 2007, court records show, the bank will remove any marks on consumers’ credit reports. That way, a lawyer said, “should a previously sold credit card account go through a bankruptcy discharge,” the mark will already be gone. Together, the decisions could help more than one million Americans."

 

I wonder if this will affect an $800 2009 BOA chargeoff? How do I know whether a charged off debt was sold I wonder, if it only appears as OC?

Edited May 8, 2015 by joelbnyc

[jkk4life]

Finally, BOA and Chase absolutely would not cooperate when I was doing my credit repair. BOA actually changed the reporting to a *current* chargeoff when I disputed it and did not remove until I sent them an intent to sue letter. Chase kept changing the account information completely every time with wrong information and they would not do anything even going through the executive office several times. It only came off at the 7 year mark.

 

Am I missing something or is there not even any financial penalties for them? What a load of crap.

[Bulldog21]

Finally, BOA and Chase absolutely would not cooperate when I was doing my credit repair. BOA actually changed the reporting to a *current* chargeoff when I disputed it and did not remove until I sent them an intent to sue letter. Chase kept changing the account information completely every time with wrong information and they would not do anything even going through the executive office several times. It only came off at the 7 year mark.

 

Am I missing something or is there not even any financial penalties for them? What a load of crap.

 

$1K fine isn't much of a deterrent until you start talking about class actions.

[joelbnyc]

Am I missing something or is there not even any financial penalties for them? What a load of crap.

BOA is just going to remove 'sold' charged off CC debt completely...

 

So if the CA hasn't reported, removed it or PFD, then a BOA chargeoff should vanish with or without.

 

Going to try including this in a 2009/10 BOA charge off I haven't disputed yet. Not sure if it was sold or not tho.

Edited May 8, 2015 by joelbnyc

[SRQ]

I want in on a class action! But I didn't go through BK.

It's completely true that the banks and CA and JDB are bottom feeders and holding people hostage via their credit reports.

[tweak]

"Bank of America promised to go further, agreeing to fundamentally change the way the bank reports all the stale debts that are sold to financial firms. For all credit ­card debts sold since May 2007, court records show, the bank will remove any marks on consumers’ credit reports. That way, a lawyer said, “should a previously sold credit card account go through a bankruptcy discharge,” the mark will already be gone. Together, the decisions could help more than one million Americans."

 

 

This could be huge.

 

The way I read it, any BOA will voluntarily delete any CO since 5/2007 that was sold to a JDB.

[joelbnyc]

This could be huge.

 

The way I read it, any BOA will voluntarily delete any CO since 5/2007 that was sold to a JDB.

Yeah if the times reporters got it right.

 

Could set a precedent with other banks following suit. Maybe.

 

Slightly easier and maybe cheaper for a bank to delete and not report all sold debt than to keep track of bankruptcies, even if it might reduce the ongoing value of the bad debt they sell by a few basis points.

Edited May 8, 2015 by joelbnyc

[tweak]

Going to try including this in a 2009/10 BOA charge off I haven't disputed yet. Not sure if it was sold or not tho.

 

If BOA sold it, it will report a $0 balance and say something like "transferred/sold".

[joelbnyc]

 

Going to try including this in a 2009/10 BOA charge off I haven't disputed yet. Not sure if it was sold or not tho.

If BOA sold it, it will report a $0 balance and say something like "transferred/sold".

Well I can hope that in all this mass of deletions maybe a BOA rep will delete a 6 y/o charge off for me whether or not it's been sold.

[tweak]

 

"Bank of America promised to go further, agreeing to fundamentally change the way the bank reports all the stale debts that are sold to financial firms. For all credit ­card debts sold since May 2007, court records show, the bank will remove any marks on consumers’ credit reports. That way, a lawyer said, “should a previously sold credit card account go through a bankruptcy discharge,” the mark will already be gone. Together, the decisions could help more than one million Americans."

 

 

This could be huge.

 

The way I read it, any BOA will voluntarily delete any CO since 5/2007 that was sold to a JDB.

 

 

Or another even better interpretation:

 

BOA will remove all negative notations ("marks"), leaving an old closed positive tradeline.

 

I'd be happy with either.

 

 

The article said Chase will fix their reporting by August, but did not mention a timeline for BOA.

 

I'm NOT going to dispute my BOA CO, and instead wait and see what happens.

Edited May 8, 2015 by tweak

[Second Chances]

 

Going to try including this in a 2009/10 BOA charge off I haven't disputed yet. Not sure if it was sold or not tho.

 

If BOA sold it, it will report a $0 balance and say something like "transferred/sold".

 

 

I paid my BOA C/O shortly after it happened (had to for work reasons). I'll have to look in my files, but I'm fairly certain it was wasn't sold. A CA never appeared on my report and it was only a few months, so probably not sold.

[tweak]

ICAN (or anyone):

 

How do we find the text of this settlement?

 

I tried Google scholar, but nothing came up.

I'd love to read exactly what BOA and Chase agreed to do, straight from the horse's mouth.

Edited May 8, 2015 by tweak

[bkchild78]

This is how I've been attacking my Experian creditors since my discharge, Jan. 2014. I've been writing to them stating their continued reporting of late payments while payments were not legally collectible (automatic stay) is a violation. Experian disagrees. However, I've gone straight to the creditor advising of their violation and am getting the late marks/charge off or accounts completely deleted. Its about time someone has got on them about this.

[joelbnyc]

This is how I've been attacking my Experian creditors since my discharge, Jan. 2014. I've been writing to them stating their continued reporting of late payments while payments were not legally collectible (automatic stay) is a violation. Experian disagrees. However, I've gone straight to the creditor advising of their violation and am getting the late marks/charge off or accounts completely deleted. Its about time someone has got on them about this.

I think Experian disagrees about everything.

 

I am disputing a 2009 trade line for which I have a certified mail letter from the President of the OC saying neither her firm nor their CA has any record of me or my account.

 

I haven't told Experian I have the letter, it's dated within a week of when Experian received my dispute.

 

If Experian verifies, I'm going straight to a consumer lawyer to sue or settle.

[ICANHASMUNY?]

if there was a class action , it's on pacer

[Rogue]

Well I am glad there is finally some resolution here!

 

We should start a new thread: My TARP Bank is so amateur because....

 

Remember how CrapOne refused to report credit limits on it's cards to manipulate consumer FICO Scores down!

[fury1995]

There were several posts in the last few months about BOA negative tradelines disappearing without being disputed or prompted. Wondering if this is related.

 

DH had two BOA CO's and one Chase CO disappear unrelated to a BK but were transferred to internal CA's for collection and then judgements. The judgements are live but there are no tradelines tied to them any more.

 

Previously all three tradelines showed updated statuses as CO with balances as recently as 5 months ago. One was reporting monthly.

Edited May 10, 2015 by fury1995

[cv91915]

"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 credit report is still going to have the public record for the bankruptcy itself. I don't see how this quote has much merit.

[VintageWillow]

"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 credit report is still going to have the public record for the bankruptcy itself. I don't see how this quote has much merit.

Well, something I've been wondering is, does the number of IIB accounts change the score? It might help me if my 2 BOA and 2 Chase IIB accounts disappear if that is the case. I would only have 1 IIB account on TU and EQ and 0 on EX if that were to happen.