Credit One Loses Effort to Nix Bankruptcy Discharge Class (1)

A nationwide class of consumers can pursue declaratory relief against Credit One Bank NA for violating their bankruptcy discharge rights, a New York bankruptcy judge ruled.

A default judgment against Credit One for refusing or failing to update the credit reports of nearly 300,000 individuals to reflect that their credit card debts were discharged in bankruptcy will remain in place, Judge John P. Mastando III of the US Bankruptcy Court for the Southern District of New York ruled March 28.

The decision is the latest in a decade-long legal saga initiated by a former bankruptcy debtor who won a default ...