Many Tax Liens and Court Judgments to be Removed from Credit Reports
The three major credit bureaus, Equifax, Experian, and TransUnion, will remove many tax liens and civil judgments from consumers’ credit reports beginning July 1, 2017. These records are often a major source of credit denials when consumers apply for essential credit like mortgages and auto loans.
Not all tax liens and judgments will be removed. If the lien or judgment contains the name, address, and either Social Security Number or date of birth, the notation will remain. In practice, though, this means that most liens and judgments will not be reported, because there are almost no such records that contain all this information.
This change is part of the wave of changes that emerged when the credit bureaus settled with 31 state attorneys general, including the Massachusetts attorney general. The settlement uncovered numerous errors with the way accounts were being reported on credit reports, from the way disputes were handled, to monitoring of data accuracy, to marketing of credit-reporting products to consumers.
If you have tax liens or judgments being reported on your credit report, you may be able to get them removed with a simple dispute. Disputes continue to be handled in a perfunctory manner in many instances, so if your dispute does not remove the account, the credit bureau may be liable for violating the Fair Credit Reporting Act.
Culik Law is a Boston, Massachusetts consumer protection law firm. Our attorneys have handled numerous issues with inaccurate and misleading credit reports. If your report contains false information, contact us to see if we can help.