Bill > H840

This bill requires financial and lending institutions to accurately report consumer credit information after a bankruptcy filing. Specifically, if a debt is reaffirmed, meaning it survives the bankruptcy with court approval, these institutions must report any payments made by the consumer. If the debt was not reaffirmed but the account remains active after bankruptcy, the institutions must report how many months have passed since the bankruptcy filing and how many payments the consumer has made during that time. The bill defines "consumer" broadly to include those who buy goods or services or finance them with loans or credit cards, and "financial or lending institution" to encompass a wide range of banks, credit unions, and mortgage lenders. It also defines "consumer credit reporting agencies" as entities that assemble and evaluate credit information for others, and "reaffirmed debt" as a debt that remains legally binding after a bankruptcy discharge. Failure to comply with these reporting requirements can result in financial penalties for the institutions, including actual damages, punitive damages, and legal costs for the consumer in cases of willful non-compliance, and actual damages and legal costs for negligent non-compliance. Violations can also lead to fines for the institution and a requirement to correct the reporting error promptly.