Bank of America has agreed to pay $5.5 million to settle a class action lawsuit alleging it failed to update credit report information for credit card accounts sold to third parties where the account holder’s debts were discharged in Chapter 7 bankruptcy after they were sold.
According to the lawsuit BOA’s failure to update credit card information when the account holder’s debts were sold meant that the trade lines did not indicate that the debts were included in bankruptcy. The trade lines allegedly continued to reflect that the debts were sold, charged off and $0 balance.
If you had a Bank of America credit card and your debts were discharged in a Chapter 7 bankruptcy, you may be entitled to payment.
The deadline to opt out of or object to the Bank of America class action settlement is Jan. 30, 2018. More information can be found at the settlement website.