Coming July 10, 2017: Tax Liens, Judgments Removed from Credit Reports, per New Policy

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The credit bureaus (also called credit reporting agencies or CRAs) have adopted a new policy: tax liens and judgments will be removed from credit reports if they do not include the proper information identifying them to the individual.

It is estimated that 60% of tax lien information will be removed from credit reports and ALL civil judgment records will be removed!

A release from TransUnion gives some insight about what to expect:

  • Based on feedback, most Bankruptcy information will meet the minimum reporting requirements, so don’t expect those to go away.
  • The new standards will apply to both new and existing public record data.
  • Minimum identifier data required: Name, Address, Social Security # and/or Date of Birth
  • Minimum frequency courthouse visits to obtain newly filed data: 90 Days

When it will roll out: During the week of July 10, 2017, the CRAs will remove from their databases previously collected public record data that does not meet the enhanced standards.

Please pass on/share this news, because it will give a lot of folks new hope that they are not forever stuck in bad credit.

Many thanks to Credit Repair Resources, Inc. for this information. benjamin@crr760.com

 

58 responses

  1. What is the new law?

    1. Thank you for the question, Jerri.

      The bureaus’ national trade organization, the Consumer Data Industry Association, provided a statement indicating that the changes are part of the bureaus’ “National Consumer Assistance Plan” that follows a settlement in 2016 with 31 state attorneys general over alleged problems with credit reporting accuracy and correction of errors on credit reports.

      Eric J. Ellman, the group’s interim president, said the bureaus have adopted “enhanced public record data standards for the collection and timely updating of civil judgments and tax liens.” The standards will apply to new and existing data in files and will require that the public records sources include the individual’s name, address and Social Security number or date of birth. Public records sources will also need to be updated on a timely basis to be eligible for inclusion in credit files. Most civil judgment data and up to half of tax lien information cannot currently meet these tests, according to one industry estimate.

  2. Does this only apply to judgments and liens that have already been paid or that are still owed?

    1. Tanisha, I posted more information today. Having a balance or paid off is not a factor.

      1. I assume this means credit scores will be adjusted to reflect this removal. If I pull my credit this week will it reflect this change? If not, do you know when? Thank you!

      2. Please see my latest post that explains more about the expected result for credit scores http://www.askcarolynwarren.com.
        Withore than 11 million credit reports to update, the credit bureaus will need more than one week to complete the task.

      3. Very informative, thanks! I’m curious if you’re familiar with the program CoreLogic that mortgage companies use to submit proof of paid judgements. Do you think if proof of payment of judgement was submitted via these services if then the credit bureaus would connect the social security of a person to the judgement and offer reason enough to keep the judgement on the record?

      4. Sara, thank you for your question. I am familiar with CoreLogic, and in fact, I was hired to write some copy for them in the past. This is the first time in history for this particular action by the credit bureaus. We will see how it all plays out. I cannot predict what they are going to do.

  3. Sara, thank you for your question. I am familiar with CoreLogic, and in fact, I was hired to write some copy for them in the past. This is the first time in history for this particular action by the credit bureaus. We will see how it all plays out. I cannot predict what they are going to do.

  4. July 16th and tax lien information still remains on my Equifax credit file

    1. Cam, with 11 million credit files to update, it’s going to take more than six days to complete them all. Additionally, if your lien contains all three correct identifiers, then it will not be removed.

      1. I called one of the credit bureaus last week and they said they are not automatically removing the these items, rather disputing them only if the consumer calls. She seemed to be aware of the new law and said there was so plan for them to automatically remove items from reports. This is just one call, at one bureau.

  5. I have an IRS tax lein on my credit how would I go about getting it removed from my report. I’m looking to purchase a home?

    1. Thank you for your question. Please see my post dated July 6 here for more information about IRS tax liens.

  6. My judgement has been removed from all 3 bureaus. It is still active as I have been paying on it over 4.5 yrs. With this being said I still pay on it until I receive something from the courts correct? Thank you

    1. Pay until you fulfill your agreed upon obligation.

    2. Wow, that’s great news! Curious did you just run a credit check on your own and discover this or did you reach out to the bureaus to dispute the judgement and eventually get it removed? I assume the former, but just wanted to be sure. Seven years have not lapsed since the judgment was placed, correct?

      1. Hi,
        Credit Karma sent me an e-mail letting me know that negative mark has been removed. I checked all 3 and it wasn’t on any.
        I did finally get a hold of the collection advocate for the law firm and they stopped interest on the judgement and I can say everything I pay every month is going to principle. Another 2.5 yrs and it will be paid off. They agreed to send me balances and anything else I request. Was an odd overly nice conversation.
        With this being said, it might not be on the TRW but keep paying until fulfilled.
        Thank you!

      2. Sorry for so many questions, but Credit Karma sounds cool. I’m looking them up now and may sign up. Were you able to check all three agencies via Credit Karma or did you do that directly with the agency?

      3. Hi,
        Trans Union and Equifax through Credit Karma. Experian through their site.

  7. It is august 1 2017 – I had a judgment and tax leins on my credit report. Experian deleted all info but TransUnion and Equifax indicated they will not be deleting. I went to the Courts got a copy of the tax leins that have no social security and no birth date. What can I do?

    1. Kathy, you have the legal right to dispute anything on your credit report that you believe is inaccurate. If you can provide supporting documentation, that will help. Regarding tax liens and judgments, there is more information here.

  8. I am interested in your response to Kathy above. As mine was removed by TU but not Equifax… I have not checked Experian yet. I have a copy i pulled from the internet of my form 668 that has the identifying number blacked out so I cannot tell if full Soc Sec is there or not but there is no birthdate.

    1. I read something here that indicated that they have to have 3 out of the 4. Name, address, social security # and birthdate. According to the Register of Deeds in my County, years ago that was outlawed. They are not required by law to release any social security nor birthdate, but it does not appear on any LEINS anyway. TransUnion and Equifax is hard for some reason. I can see why they were fined tons of millions of dollars. The sad thing is most Lenders pull a credit report from guess who (TRANSUNION). WHY?

      1. Mortgage lenders pull a tri-merged credit report that includes Equifax, Experian, and Transunion on one report. This provides more complete information than looking at only one credit bureau. Three credit scores are included, one from each credit bureau. Mortgage lenders go by the middle score of the three. If only two scores appear, they go by the lower score.

  9. Does anyone know if the 3 credit bureau are still deleting bad information? According to TransUnion, they are done. So if you still got that bad info on your report, I was told you have to
    Dispute so they can investigate. But why would they make people do this, when the Law says: Delete if they do not have support documentation like NAMES, SOCIAL SECURITY#, ADDRESS AND BIRTHDATES. We all need to refile another lawsuit and they need to pay another fine. This time I hope the Judge rule that TRANSUNION be shut down indefinite because they DO NOT WANT TO ABIDE BY THE LAW.

  10. So do you know what date your TRANSUNION file was deleted. Was it July 31?

    1. I do not know when my TU was deleted but it had to be sometime in the middle of July because my TU credit score jumped almost 30pts. Since I have no there negatives of TU I assumed that was the reason why as it no longer reports a tax lien under negative information. I have yet to pull a comprehensive report. I was hoping to see this drop off and order all 3 to confirm before I try to get more credit.

      1. I’m not sure if TRANSUNION knows exactly what they are doing cuz according to the courts records that I pulled, there is no birth date and no social security on the lein that is on my record. Called them today and was told to call back on August 18. Rep told me they are gonna have to notify the Courts. I’m not sure why they think they will get some additional information. Rep told me at Courts NO LEINS HAVE A BIRTHDAY OR SOCIAL SECURITY. Said that laws passed years ago because of confidentiality.

  11. My Experian crap was deleted earlier in July – but not TRANSUNION AND EQUIFAX.

    1. Hi Kathy,
      So i just pulled all 3 reports and the only one for me still showing is Equifax. Both TransUnion and Experian have removed the tax lien. However Equifax has not! Oddly enough they are the ones I pay $30/ month for credit monitoring services for the last 2 years!!! Glad to see they work with their customers….what BS!

      1. Is that a crock of nothing. Experian released but Equifax and TransUnion will not bulge on my report. I’m gonna wait til the end of August and check to see what they still have on my report. If I still have that crap on mine, I’m gonna file a complaint with CONSUMER FINANCE.GOV.
        They better chill cuz they are in hot water with them and if more complaints come in about them who knows what will happen. So they better wake up to the real daylight before they get hit again with more millions of dollars and fines. GOOD FOR THEM.

  12. Good afternoon,
    Question: I disputed an old judgement back in June with TransUnion and the results of my dispute was the account was deleted from my credit report as the creditor did not respond within 30days to verify the debt, does this mean the debt then is no longer owed? It was from 2004. I checked with Experian and Equifax and the debt has been removed as well. I really need to know what to do from here since I am currently enrolled in a debt settlement program and need to know what I in fact need to pay in order to get my credit back on track.

    1. Thank you for your comment Mariya. I have not seen your credit report, so I cannot say exactly what is going on, but I have to wonder if the statute of limitations for your state has run out. Perhaps that is why the credit bureaus have removed the old judgment.

      1. Carolyn,
        Thank you for replying! The judgement was from 2012 after doing my research. What is the next step from here since the creditor did not respond within 30 days to verify the debt even before the new law went into affect? What is the statute of limitations for the state of Ohio? How do I determine if in fact I no longer owe? Do I reach out to the creditor?
        Thank you.

      2. You might want to reach out to a licensed credit repair specialist. I am a licensed mortgage loan officer; I don’t do credit repair.

  13. CALLED TRANSUNION ON AUG 4, 2017 REQUESTED PAID IN FULL TAX LIEN BE REMOVED BASED ON NEW LAW. Represented stated it should have been removed last month(July) and he will put dispute in system.
    Recalled TransUnion on Aug 8,2017 to make sure request was in system. 2nd Representative staed he did not see request for tax lien removal.
    These credit bureaus are so dishonest and these are the type of corporations our gov entrust for accurate information. Make sure you follow up with any phone dispute request. I got out pen and paper and this dispute will be mailed certified.

    1. Thank you for your comment, Tracie. It’s good to know what is happening in regards to the new policy.

  14. what is the actual law and where can I find it because I am writing a dispute and I want to qoute the law in my dispute.

    1. Jenny, it is not a law. It is a policy instated by the credit bureaus in response to a lawsuit against them.

  15. I called Equifax to see why they have not removed the unpaid fed tax lien as it does not meet the requirements, since both Experian and TransUnion have removed the information. They informed me that they are notified by the jurisdictions the liens are filed in whether or not they meet the criteria and if not then they remove. Seems like a ton of work transferred to the local public records offices to fulfill a mandate given to the credit bureaus, so I am a bit skeptical in the explanation I received from the nice gentleman in India that answered the customer service call.

    So I guess my question is how do the credit bureaus get the information to either clear or keep that information for the report. Or are do they already have an electronic copy from when the report was filed with them and it is their responsibility to review documents they already have?

    I was told by customer service that I would have to file a dispute but I am a bit skeptical to do so as I do not want it to trigger anything with the IRS as it is due to fall off after 10 years middle of next year. It is for a smallish amount of money but right now that is a considerable amount to me given my current employment situation.

    Would a dispute go to the IRS? or the local public records office that filed it? or could it trigger a flow of questions that could open a can of worms?

    Thank you,

    1. Thank you for sharing your experience with us. One has to wonder about the wisdom of hiring representatives in a third world country to handle complex situations for the U.S. credit bureaus. That is a topic in itself! Your situation sounds complex; I suggest reaching out to a licensed credit repair specialist who has at least five years’ experience.

  16. Folks, please understand that if your tax lien is removed from your credit report due to the lack of proper identifiers, it does not mean you get to skip out on paying taxes you legally owe. It means your credit score will increase because that derogatory information has been removed. The IRS will still have record of taxes owed.

  17. Stephanie A McIntire | Reply

    Does the lien have to have FULL social security number or is the last 4 digits enough to pass the criteria? Mine has the last 4 digits and a wrong address in which I have NEVER resided at.

    1. Thank you for your question. Please see Scott’s reply.

      1. Hi,
        According to the CFPB the lien must have your complete SSN. Having only the last is grounds for dismissing.
        Best of luck!

  18. My unpaid tax lien was removed from my Experian credit report mid July but not TU or Equifax. Has anyone had the same issue of having a tax lien removed from one credit report in July, then maybe one or both of the other credit reports later on? Not sure if I should dispute yet. I am applying for a mortgage, this is holding me back.

    1. Please see today’s post for updated information.www.askcarolynwarren.com

      1. Afternoon, so being specific are there any sample tax lien letters we can look at to send to all 3 creditors and how do we know if all 4 or 3 of the criterias were meet by the agency attaching the liens to our credit. And or what questions to ask the creditor to have them removed.

        Thank you in advance

  19. Hi, I filed a dispute mid July 2017 to remove an old tax lien. Experian & Equifax deleted from my credit report with-in 2 weeks. Transunion reported as accurate and wouldn’t delete. I re-opened & filed another dispute 45 days ago with no response. I can’t get thru on the phone and filed another (3rd dispute) via email. I guess I will keep filing until I get a response or will contact my state for assistance. FYI when disputing submit the actual lien form 668 (y) (c) as evidence for the removal. Anyone have any thoughts how to approach TU?
    Thank you,

  20. Do the identifiers for tax liens require full social security number or just the last four? Where do we reference the actual terms? Thanks!

    1. Thank you for your question. Please see Scott’s reply.

    2. According to CFPB your complete SSN has to be in the lien. The last 4 only is grounds for dismissal

      1. Thank you for that input. I would trust the CFPB’s statement.

  21. Equifax keeps saying that a dispute needs to be filed with the originator who placed the lien for removal and I told them that Transunion removed tax lien release since it met the criteria so why aren’t they removing it. They replied that the computer scanned and removed what qualified and I said the computer missed it and needs to be evaluated that it’s an Equifax issue-my dispute is with them. They said there is no disputing them form. How do I get them to remove it? Since it was from a settlement what do I quote to them as case #,etc., also what state ag’s where involved in case? I called Consumer Financial Protection Bureau in Washington and they didn’t know what I was talking about. There are so many articles, but the reporters didn’t do a thorough job in reporting so the consumer has enough info to fight to get a removal. I need some backup to make my case to Equifax.

  22. Just to confirm….. Just because the new policy wipes these items off of your credit report, it does not mean that the debt is still valid and you need to continue payments, correct????

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