JPMorgan, BofA to update credit reports on extinguished debt

Bank of America Corp. and JPMorgan Chase & Co. have agreed to update their customers' consumer credit reports to eliminate debts that have been legally extinguished, providing relief for more than a million Americans, The New York Times reported.

The move is a victory for U.S. borrowers whose job prospects and ability to take out new loans have been affected by debts that remained on their credit histories, even though they had been eliminated in bankruptcy proceedings, the newspaper said.

The change by the two U.S. banks emerged this week in Federal Bankruptcy Court in White Plains, where the two banks, together with Citigroup Inc. and Synchrony Financial, are facing lawsuits accusing them of ignoring the bankruptcy discharges, The New York Times said.

A spokesman for Bank of America in Hong Kong and a representative of JPMorgan declined to comment.