Recently the credit reporting agencies agreed to apply new rules to judgments and tax liens.
The new rules require more information so that tax liens and judgments are verified on a timely basis.
These new rules will help a lot of people, especially those who might have other relatives with similar names. So, if your name is John Smith and your son is John Smith Jr. there is a good chance that you and him will have mixed files or mixed up data appearing on your credit report.
So what are these rules?
The new standards will apply to new and existing public record data on their respective credit reporting databases and will require:
• A minimum of consumer personal identifying information (PII): (1) Name,
(2) address, and (3) SSN and/or date of birth.
• A minimum frequency of courthouse visits to obtain newly filed and updated public records at least every 90 days.
These new standards mean many judgments will simply not appear on credit reports anymore as based upon current standards, few judgments would qualify under these new standards.
The Consumer Industry Data Association in a press release estimated that about half of all tax liens would be affected by this rule.
This means that unless the credit reporting agencies, creditors and debt collectors get their act together and somehow are able to take steps to verify this information, many consumers with a record of tax liens and judgments will benefit.
This rule should be implemented in mid-July 2017. So if you see a judgment or tax lien still on your report, it would be wise to verify that that information contains the necessary data.
According to the news release, this move, is part of The National Consumer Assistance Plan an effort launched in 2015 by the credit reporting agencies, “to make credit reports more accurate and make it easier for consumers to correct any errors on their credit reports.”