In July 2017 the three big credit reporting firms began removing most civil judgments from consumers’ credit reports. For many consumers, this was great news, as the removal of the judgments increased consumers credit scores. There is more great news to come! According to estimates by LexisNexis Risk Solutions, more than 5.5 million tax liens will be removed from consumers’ credit reports in April 2018, which may increase the chances of loan approval with financial institutions. This all stems from the three credit reporting companies being included in a class-action lawsuit over their handling of consumer tax liens and judgment information. The allegations in the lawsuits claim that the credit reporting companies haven’t been accurately updating tax lien information to reflect when the matter is withdrawn or otherwise properly handled. The firms, TransUnion, Equifax, and Experian have agreed to delete the liens from consumers’ credit reports and stop new tax liens from being added to credit reports.
What does this mean for consumers? It means that someone who may have been viewed as less than creditworthy or a risk, may now see a credit score increase and may appear less risky to lenders…..or NOT! If you believe that the three big credit reporting companies are the only ones who collect this type of data on you, you are sadly mistaken. Although lenders rely heavily on the data reported to TransUnion, Equifax and Experian to make a credit approval, there are other reporting agencies such as LexisNexis Risk Solutions whom lenders may obtain your data or go through public records themselves to gather data necessary to make a loan approval.
LexisNexis Risk Solutions maintains information on consumers related to credit, insurance, health, tenant history, employment and other potential “adverse action” data that may be out there in cyber world on you. LexisNexis also describes their services as providing an alternative data solution that delivers behavioral consumer insight using information from public records and multiple proprietary data sources. You can obtain a copy of your personal report at www.personalreports.lexisnexis.com.
The ink isn’t dry yet on the finalization of the civil judgment with the big three credit reporting companies, so there are likely more changes to come concerning how tax liens will report, but according to the court documents, you could see tax lien removals as early as the week of April 16th. If your credit report has been impacted by a tax lien, be sure to check your report to see if it has been removed.