How To Remove Bankruptcy Lawsuits And More From A Credit Report: A Step
A while back, I reached out to Corey Gray to see if hed be interested in joining the brain trust at Credit Repair Cloud.
Not only is Corey super experienced in the credit and debt industry, but he shares the same core values that I do: the credit repair industry is all about helping others and changing lives.
When he accepted, I was thrilled. Now, I can tap into his knowledge, on-demand! One credit topic that we often discuss are dreaded public recordsand how to remove them from a credit report.
Public records like bankruptcy, civil judgments, and tax liens have a major impact on your clients credit score. By being able to remove them for your clients, you can make an immediate and meaningful difference in their financial lives.
Trust me, if you can help them with this, your customers will love you!
How Public Records Are Added To Credit Reports
Most of the items on your credit reports appear there because a company to which you owe money supplies the credit bureaus with the information.
Your credit card issuer, for example, sends the credit bureaus data each month about how youre managing your account. The reported data will include information like your payment history, your balance, and whether youre currently on time or past due.
If a data furnisher does choose to send information to the credit bureaus, it has to follow the rules set forth in the FCRA. If a credit bureau accepts your data and includes it on your credit reports, those same rules apply.
Public records are different. Theres no data furnisher supplying information to the credit bureaus. A court house doesnt send the credit bureaus information about who has filed bankruptcy.
Rather, the credit bureaus seek out public record information on their own. They accomplish this by using electronic public records services, like PACER .
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How Long Does Information Stay On Your Reports
The FCRA limits how long a credit reporting agency can report negative items in your credit report. Items that aren’t negative but are neutral or positive can be reported indefinitely. Review the rules below and then check your credit report for negative items that are too old to be reported.
No Negative Credit Reporting If You Make an Agreement Due to Coronavirus
Under the federal Coronavirus Aid, Relief, and Economic Security Act, if you make an agreement with a creditor to defer one or more payments, make a partial payment, forbear any delinquent amounts, modify a loan or contract, or get any other assistance or relief because COVID-19 affected you, the creditor must report the account as current to the credit reporting agencies if you weren’t already delinquent.
Why You Won’t Find Tax Liens Or Civil Judgements On Your Credit Report
Before 2015, tax liens and civil judgments were regularly included in the public records section of your credit report.
In 2015, however, Equifax, Experian, and TransUnion entered into a settlement agreement called the National Consumer Assistance Plan with attorneys general in over 30 states. A major component of the settlement agreement required the three major credit bureaus to change their standards for reporting on public records.
As of July 1, 2017, any public record on your credit report must include your name, address, and your social security number or your birth date before the credit bureaus can include it on your credit report. If a public record is missing any piece of this information, the credit bureaus can’t report it.
When the settlement first took effect, the credit bureaus removed some tax liens and civil judgments here and there. As of April 2018, however, the credit bureaus no longer include any tax liens or judgments on credit reports. If you noticed a jump in your credit score around this time, the NCAP changes could explain why.
While the NCAP may be a source of relief, you might still have cause for concern if you have an old tax lien, foreclosure, or judgment lurking in your past. These public records might not show up on your credit report anymore, but mortgage lenders can still search for them when you apply for a loan. This is why it’s still good to know the steps for removing these public records.
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What Is A Credit Report And What Does It Include
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- A credit report is a summary of how you have handled your credit accounts
- It’s important to check your credit reports regularly to ensure the information is accurate and complete
A credit report is a summary of how you have handled credit accounts, including the types of accounts and your payment history, as well as certain other information thats reported to credit bureaus by your lenders and creditors.
Potential creditors and lenders use credit reports as part of their decision-making process to decide whether to extend you credit and at what terms. Others, such as potential employers or landlords, may also access your credit reports to help them decide whether to offer you a job or a lease. Your credit reports may also be reviewed for insurance purposes or if youre applying for services such as phone, utilities or a mobile phone contract.
For these reasons, it’s important to check your credit reports regularly to ensure the information in them is accurate and complete.
The three that provide credit reports nationwide are Equifax, Experian and TransUnion. Your credit reports from each may not be identical, as some lenders and creditors may not report to all three. Some may report to only two, one or none at all.
Your Equifax credit report contains the following types of information:
- Identifying information
- Inquiry information
There are two types of inquiries: soft and hard.
- Collections accounts
Public Record On Credit Report:
- 1080 upvotes
- 19 upvotes
Okay, so I’m SUPER confused as to what’s a public record in the first place. It says this on my credit report:Lender: RBCClass: Non derogatoryRegistered Item—> This was recent, and I recently got approved for a car loan with RBC that I’m paying. I’m in good standing with all of the banks I bank with. I have NO clue what this is. I called RBC, and they have no idea. They didn’t even know what a public record was. So I called the dispute center, and it was this woman who could barely speak English and she couldn’t help me.What is this? Is this something negative? Should I dispute this ?I looked online and they say public records is for bankruptcies, tax liens, foreclosures… i have NONE of that.Is it just the loan I have? Is that what it is? Thanks in advance.
Licensed Credit Bureau member, S1, FI Automotive, CCP13
mikeymike1 wrote: âThe public record notification is protocol for PPSA registry of the bank/FI lien placed against the vehicle you financed. The PPSA names 2 core principles within the registry which is the FI and you as you are the borrower. The public record notification serves a number of purposes not just for ident purposes for future applications for credit but also as credit bureau score benefit for future auto loan consideration.If this is your first auto loan the lender you apply to next will underwrite and qualify you knowing you’ve had previous auto loan experience. Its a good thing.
- Oakville, ON
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Errors On Your Credit Report
If you find errors on your credit report, write a letter disputing the error and include any supporting documentation. Then, send it to:
The credit reporting agency and the information provider are liable for correcting your credit report. This includes any inaccuracies or incomplete information. The responsibility to fix any errors falls under the Fair Credit Reporting Act.
If your written dispute does not get the error fixed, you can file a complaint with the Consumer Financial Protection Bureau .
Checking Your Nationwide Specialty Credit Reports
Several nationwide specialty credit reporting agencies also exist. These agencies keep records on particular types of transactions, like tenant histories, insurance claims, medical records or payments, employment histories, and check writing histories. These agencies must give you a free report every twelve months if you request it. To get a specialty credit report, you’ll have to contact each agency individually.
How to Stop Getting Prescreened Credit Card and Insurance Offers
Under the FCRA, credit reporting agencies are allowed to include your name on lists that creditors and insurers use to make offers to you, even though you didn’t initiate the process. ). The FCRA also provides you the right to opt out of receiving these offers , which prevents the agencies from providing yourcredit file informationfor these offers. ). You can opt out for five years or permanently.
If Your Credit Reports Contain Errors Or Outdated Information Heres How To Dispute Those Items With The Credit Reporting Bureaus
By Amy Loftsgordon, Attorney
A “credit report” is a detailed record of how you’ve managed your credit over time. Credit reporting agencies, like Equifax, Experian, and TransUnion, collect data from creditors, lenders, and public records to produce the reports. The agencies then sell the reports to current and prospective creditors, and anyone else with a legitimate business need for the information. For example, lenders use credit reportsor the that results from the data in itto help them decide whether to grant you credit and, if so, under what terms. The better your credit report, the more likely your credit request will be granted, and the lower your interest rate will be. Many landlords, employers, and insurance companies will also consider your credit history when making a decision.
So, your credit report is either a valuable asset or a liability, depending on its contents. The Fair Credit Reporting Act requires credit reporting agencies to adopt reasonable procedures for gathering, maintaining, and distributing information. It also sets accuracy standards for creditors that provide data to agencies. Even with these safeguards, credit reports often have errors and inaccuracies.
In this article, you’ll learn:
What Information Is Not Part Of Your Public Record
You may feel like your whole life is on display, but its not entirely. There are a few categories of strictly confidential records that are protected by law. Confidential records include welfare benefits, income tax, education level, and medical and criminal records.
These records are kept confidential because they contain Social Security numbers, contact information, health history, and financial information.
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Send A Copy Of The Response You Received From The Clerk Of Court To The Credit Bureaus Along With A Letter
Again, our subject matter expert Corey Gray has helped us out with a sample text:
I have previously disputed > Insert Public Record Name / Reference # < with you and in response you verified the item as accurate stating that you have verified the information with the court. I contacted the court and their response is enclosed. It is clear they do not report to you or any credit bureau for that matter therefore your original response verifying the item with the court was either an error or a lie. Either way, the reporting requirements do not comply with FCRA § 611 and the information must be deleted immediately.
After receiving this letter, the bureaus will typically respond back with a deletion – If so, boom! You just changed the life of your client and earned your Credit Hero cape!
Deleting the public record from your client’s record means they are closer to financial freedom, and peace of mind.
If they dont delete, it is a good time to file a complaint with the Consumer Financial Protection Bureau . Remember, have a valid reason for removal and your clients are entitled to fair and accurate reporting.
Coreys Pro Tip: If youre still not seeing success, dont give up! You can also compare the item within PACER and if you see any inaccuracies between PACER and LexisNexis you can dispute directly with LexisNexis to improve your chances at removal.
What To Look For On Your Credit Report
Lenders use codes to send information to the credit bureaus about how and when you make payments.
These codes have two parts:
- a letter shows the type of credit you’re using
- a number shows when you make payments
You may see different codes on your credit report depending on how you make your payments for each account.
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Public Records Arent Necessarily Gone Forever
Although the credit reporting agencies have agreed to remove certain public records from credit reports for now, that doesnt mean tax liens and judgments wont be added back to credit reports in the future. There are two reasons: Its not illegal to put them on a credit report, and the credit bureaus only agreed to remove them for a time.
Public Records On A Credit Report: All You Need To Know
A public record on a credit report can have a more deteriorating effect on credit score than many missed or late payments. In fact, public record information, such as bankruptcy, can remain on a credit report for 7 to an indefinite number of years, and prevent the individual from qualifying for a loan. Thats why it is essential to check your credit report regularly, and ensure it has no inaccuracies in the form of a public record or any other negative item. Heres what you need to know about public records and their impact on credit score.
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Understanding The Updated Public Record Policy
In 2017, the National Consumer Assistance Plan went into effect and changed how data is collected for civil judgments and tax liens before these entries appear as public records on credit reports. The act was initially launched in 2015 by the three major credit bureaus to modify credit reporting rules and set stricter standards. These new standards would ensure that the data found on credit reports are more accurate and up to date.
There are two primary ways this act affects how credit bureaus obtain and report tax lien and court judgment data on consumer credit reports. First, for either of these types of entries to appear on a credit report, the public record must contain a persons:
- Social Security number or date of birth
This standard applies to both new and existing records that are already on credit reports.
Secondly, public records reported on credit reports must be checked by the credit bureaus for updates every 90 days to ensure their accuracy. If the records are not checked, they should be removed from the credit report.
Bankruptcy records already hold these strict requirements, which is why the changes dont impact this type of public record. However, many tax liens and civil judgments do not uphold these standards, in large part due to different standards of record-keeping at various courthouses.
How To Remove A Public Record From Your Credit Report
Removing a public record from your credit report requires filing separate disputes with all three major credit bureaus.
If you have a public record on your credit report, you can attempt to dispute the negative information with the credit bureaus to have it removed. The Fair Credit Reporting Act gives consumers the ability to dispute incomplete and inaccurate information contained in their credit reports with the credit bureaus.
The credit bureaus decide whether or not a dispute is frivolous solely based on your communication and any proof that you can provide. Public records also involve government agencies and courts. Therefore, some additional steps may need to be taken in addition to disputing the information with the credit bureaus.
This is one of the reasons that many people hire a credit repair company when it comes to repairing their credit and removing public records from their credit reports.
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Why You Should Never Pay A Collection Agency
On the other hand, paying an outstanding loan to a debt collection agency can hurt your credit score. Any action on your credit report can negatively impact your credit score even paying back loans. If you have an outstanding loan thats a year or two old, its better for your credit report to avoid paying it.
Send A Letter To The Credit Bureaus To Dispute The Public Record
Our credit repair software includes over 130 dispute letter templates to save you tons of time and help you get the best results for your clients.
By law, the credit bureaus, Experian®, Equifax® and TransUnion® have to remove any public records that contain errors or are missing information such as name, address, and either Social Security number or date of birth.
If the credit bureaus do verify the information, your next move is to go straight to the source.
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