Thursday, November 13, 2014

Banks try to collect debts voided by bankruptcy courts; data brokers exposed debtors to id theft

The New York Times, in a story by Jessica Silver-Greenberg Thursday, reports a troubling practice by some banks which still try to collect bad debts discharged by a bankruptcy, ignoring legal requirements to remove them from credit reports, hoping that some debt will still be paid by the pressure consumes still feel when trying for example, to rent apartments.  The detailed story is here. The practice makes the debt more appealing to debt buyers. 
I one time found a $41 “bad debt” on a credit report which had been a Discover Card renewal that had been lost in a relocation.  It had grown by interest from $17.  I mailed an unbilled payment for the original $17 and Discover agreed to remove the item from the report and considered it settled
Another problem reported in the NYT today, by Natasha Singer, is that debt brokers have posted personal details about consumers online, making them more vulnerable to identity theft, story here.  The companies in question were Bayview Solutions in St. Petersburg Florida and Cornerstone and Company in Riverside CA. 

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