Newly introduced legislation, known as the “Consumer Reporting Fairness Act,” has recently gained support from consumer advocates, as well as the National Association of Consumer Bankruptcy Attorneys (NACBA).
The bill, proposed by a number of senators, would require banks to properly update debts that have been paid or discharged through bankruptcy by making sure a zero balance is shown on credit reports. Millions of Americans deal with so-called “zombie debts” that continue to appear on their credit report even after they have been paid or discharged. When banks fail to fairly report individuals’ true credit, these people often have to deal with decreased credit scores, making it even more difficult to rebuild their lives. If this act were to pass, banks would not only be required to remove debt from credit reports in a timely manner, but consumers would also have the means to take legal action against banks if they fail to do so.
Erin B. Shank, PC, is a Waco bankruptcy attorney who also serves as the State Chair of the NACBA in the Western District of Texas. Discuss whether bankruptcy is the right way for you to protect your financial security by calling her offices in Waco at (254) 296-1161 today.