Report OD if Customer Filed for Bankruptcy?

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Question:

Our bank charged off an overdrawn account in 2009 and reported it to the credit recovery service and ChexSystems. The customer is now coming in and stating we should not have reported this since she filed bankruptcy. Is that correct?

Answer:

It may depend on whether or not the customer included this debt under the bankruptcy and whether or not the bank had notice of the filing. There also may be other factors. Checking with your legal counsel would be the best avenue to further pursue this issue.

First published on BankersOnline.com 8/6/12