That's exactly the point. BigBank isn't going to warn anyone. It's just going to seek judgement, or sell the debt to shady collectors and write off the difference.
Think about the credit reporting agencies as a rather sloppy "master list" of who owes who money. It seems what is needed are stiff penalties for banks and collection agencies who falsely claim they are owed money. Until then, you can't live in peace. Someone is going to claim you owe them money if you have any money yourself.
https://www.nytimes.com/interactive/2014/08/15/magazine/bad-...
Think about the credit reporting agencies as a rather sloppy "master list" of who owes who money. It seems what is needed are stiff penalties for banks and collection agencies who falsely claim they are owed money. Until then, you can't live in peace. Someone is going to claim you owe them money if you have any money yourself.