Tax Debt Information and Civil Judgments May Be Removed from Credit Reports by July 1

Your credit report can affect your ability to buy a home, show a potential employer that you are responsible or if you have a low score, it can prevent you from getting access to the credit you need. With your financial future dependent upon your credit score, it is essential that the information be accurate and correct. However, as recently as 2013 a Federal Trade Commission study found that one in five people have an error on their credit reports. Making matters worse, the process of disputing inaccurate credit information can be confusing and often results in no corrective action taken by the credit bureaus.

Some new changes set to take effect on July 1, 2017, will shift the burden to check for accurate reporting to the credit bureaus by excluding certain information that cannot be conclusively linked to the consumer. Specifically, tax liens and civil judgments will no longer be reported unless the source documents include the consumers full name, address and Social Security number or date of birth. This rule change is expected to benefit millions of consumers as tax liens and civil judgments to not typically include full Social Security numbers or dates of birth as that may be considered sensitive information that should not be added to the public record.

Simply put, many consumers will be getting an estimated 20-to-40-point bump in their credit score from these changes. Keep in mind that while this change should be automatic, the credit bureaus are not infallible and consumers should check their own reports with each of the three bureaus to confirm that any deficient records have been removed.

If you have any questions about potential errors or mistakes on your credit reports or about how to resolve a tax lien, contact an attorney at Nielsen Law Group for help. You can schedule your initial consultation by calling (480) 888-7111 or submitting a web request here.