Monday, May 9, 2011

Koster reaches settlement with Bankruptcy First Term Lender

Missouri Attorney General Chris Koster reached a settlement with the liquidating trustee, Bankruptcy First Term Lenders Liquidating Trust.

The trustee handled the bankruptcy of Hollywood Video and Movie Gallery.

Koster said following the bankruptcy, former customers of the stores from across the country complained that a third-party collection agent reported negative credit information to credit bureaus without giving the consumers notice or an opportunity to challenge the information. He said consumers had no idea they had credit damage until they were denied credit or were only approved for limited credit, and many denied owing any money at all.

Koster said his office helped negotiate a nationwide settlement with the liquidating trustee that requires the negative information be removed from consumers’ credit reports.


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