New Credit Reporting Practices Could Be Helpful to Borrowers
The New York Times recently reported that Bank of America and JPMorgan Chase have agreed to erase debts from credit reports that have been erased by bankruptcy. Though required by law, these and other banks have long held consumers hostage by leaving extinguished debts on credit reports, often marking them as “past due” or “charged off”. Such notations adversely affected borrowers’ ability to obtain new credit and sometimes, even to find employment. This is a good step towards helping consumers re-build their credit.