The Wall Street Journal and Housing Wire both have reported that the three main credit reporting agencies have agreed to change the data upon which credit score analysis is based coming around July 1st. The change would be to remove unverified tax liens and civil-judgment data from consumer credit reports, thus improving the FICO scores of about 12 million people with scores in place currently.
From The Wall Street Journal:
The unusual move by the influential firms comes partially in response to regulatory concerns. The three reporting bureaus rarely tinker with the information that goes on credit reports and that lenders consult to gauge consumers’ ability and willingness to pay back debts.
Equifax, Experian and TransUnion recently decided to remove tax-lien and civil-judgment data starting around July 1, according to the Consumer Data Industry Association, a trade group that represents them. The firms will do so if those data don’t include a complete list of at least three data points: a person’s name, address and either a social security number or date of birth.
For more visit the Wall Street Journal or Housing Wire.
Written and Published by: VanEd