As part of the National Consumer Assistance Plan, the three bureaus were expected to reduce the amount of tax lien and civil judgment data they report, resulting in a significant information gap.
In a little-known policy shift, started July 1 the three national credit bureaus — Equifax, Experian and TransUnion — plan to stop collecting and reporting substantial amounts of civil judgment and tax lien information on public records affecting millions of American consumers.
The following standards for a record to appear on a consumer credit report will be applied tonew and existing Public Record data on July 1, 2017:
The minimum is required of consumer identifying information: name, address, social security number and/or date of birth
The minimum frequency (at least every 90 days) of courthouse visits to obtain newly filed and updated public records is required
Both of those required standards will make it tough for MOST judgments and / or liens to stay on a credit report or to be added to one.
Chi Chi Wu, an attorney with the National Consumer Law Center and an expert on credit issues, welcomed the upcoming change. “To the extent that it’s preventing errors” in credit reports, she said — especially situations where a credit file has one consumer confused with another, which Wu said occurs too frequently — “it should be a good thing.”
How much of a good thing it will be for you depends on what’s in your credit files and how lenders adapt to the elimination of what they consider important information — if it’s accurate.
If the presence of tax liens and judgments are preventing you from your dream of homeownership, perhaps taking a peek at your credit report might be a good thing.
Contact me and I can refer you to a competent mortgage professional.