[ The Atlanta Journal-Constitution: 4/1/03 ] Federal judge to clarify rules for credit reporting companies By David McNaughton The Atlanta Journal-Constitution A federal judge in South Carolina has given preliminary approval to a settlement that requires the three big credit report companies to change how they report on consumers with ties to another person who has filed for bankruptcy. Under the agreement, either the bankruptcy notation must be eliminated, or an explanation must be included in a credit report that the bankruptcy filing was made by another individual. The agreement would settle a class-action lawsuit against credit reporting companies, Atlanta-based Equifax, Experian and TransUnion. The suit alleged the companies reported misleading information about millions of consumers. Each of the companies earlier estimated that about 1.6 million consumers who have not filed for bankruptcy have a bankruptcy notation on their credit reports. That's so because they co-signed a loan or were a joint-account holder with another individual who did file for bankruptcy. The plaintiffs in the case alleged they were denied credit because the bankruptcy notations. Consumers directly affected by the suit will be notified by early August. Final approval of the settlement could come by late September. In addition to changes in the affected credit reports, each of the affected consumers would be offered a free credit report.
