For most Michigan residents, establishing and sustaining a respectable credit score is crucial. Many people work very hard at avoiding overwhelming credit card debt and defaulting on payments of existing debt. Failing to practice proper debt management could result in a low credit score, which directly affects one's ability to obtain loans of any kind. Furthermore, it will also negatively affect insurance rates, job applications and more.
Imagine the alarm for people, who may have maintained good credit scores, when they received a letter sent by the bank to inform them that they had inadvertently been reported to credit bureaus as having filed for bankruptcy. This is exactly what happened to credit card clients of Fifth Third Bank in February. Reports that approximately 21,000 clients were affected by these false reports were not confirmed by the bank.
Fifth Third reported that the error occurred during a system upgrade that took place during the final three months of 2013. Bank officials stated that all affected people received official letters informing them of the error. The bank reported that all credit bureaus had been informed of the error, and clients should save the official letter as testimony thereof. They added that only clients applying for credit during this time would have been affected.
Unfortunately, numerous Michigan residents have not been able to weather the current economic conditions. Those who find themselves overwhelmed by unpaid credit card debt may want to consider all available legal options. The protection of Chapter 7 or Chapter 13 bankruptcy may be the only truly effective legal way to eliminate debt in most cases.
Source: mlive.com, Fifth Third Bank incorrectly reports credit card customers as bankrupt, Shandra Martinez, Feb. 19, 2014