Under federal law, when someone erases a debt in bankruptcy, their bank is required to update their credit reports to indicate the debt is no longer owed. To ensure this happens, legislators have introduced a new bill that would give credit card borrowers with inaccurate credit reports the power to sue their bank or a third-party debt buyer for damages if they continue to send so-called zombie debt to credit reporting agencies.

The Consumer Reporting Fairness Act of 2015 — introduced by Ohio Senator Sherrod Brown — aims to make it easier for consumers who discharge credit card debt through bankruptcy to fix errors and obtain accurate credit reports.  Read more…