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“Judge Robert D. Drain of the federal bankruptcy court in White Plains said in one opinion that debt buyers know that a bank “will refuse to correct the credit report to reflect the obligor’s bankruptcy discharge, which means that the debtor will feel significant added pressure to obtain a ‘clean’ report by paying the debt,” according to court documents.” Debts Canceled by Bankruptcy Still Mar Consumer Credit Scores http://nyti.ms/14sR1xP (this article discusses the problem further).
This practice has caught the attention of Federal Authorities. “Now lawyers with the United States Trustee Program, an arm of the Justice Department, are investigating JPMorgan Chase, Bank of America, Citigroup and Synchrony Financial, formerly known as GE Capital Retail Finance, suspecting the banks of violating federal bankruptcy law by ignoring the discharge injunction, say people briefed on the investigations.” Reports the NYT’s article cited above and further reported in - Feds Investigating Banks’ and Debt Buyers’ Treatment of Bankruptcy Account http://bit.ly/1xJDA7p.
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