Black marks fall off credit reports in July

[edjr 5,547]

https://finance.yahoo.com/news/liz-weston-black-marks-fall-140834128.html

 

 

 

Starting July 1, the credit scores of up to 14 million people could begin to rise as credit reports are scrubbed of nearly all civil judgments and many tax liens.

Consumer advocates hail the data's deletion as a long-overdue victory for people whose scores were unfairly dinged by inaccurate information. Others worry the changes could inflate the scores of risky borrowers and have a catastrophic impact on lenders.

People shouldn't expect an immediate jump in their scores, however.

On July 1, the three major credit bureaus — Experian, Equifax and TransUnion — will exclude new records of civil judgments and tax liens that don't have minimum identifying information including Social Security numbers or dates of birth as well as any record of judgments or liens that hasn't been updated within 90 days. The bureaus also will begin to remove old records of judgments and liens that don't meet the enhanced standards, a process that's expected to take several weeks, says Francis Creighton, president and CEO of the Consumer Data Industry Association, a trade group that represents the bureaus.

Credit scoring company FICO estimates that 6 to 7 percent of people who have FICO scores will have a tax lien or civil judgment purged from their records. Tax liens stem from unpaid state or federal tax bills, while civil judgments are court rulings from lawsuits filed over old debts, unpaid child support, evictions and other noncriminal matters. Judgments and liens show up in the public records section of credit reports and can seriously damage credit scores .

DOES A JUDGMENT OR LIEN MAKE YOU RISKIER?

The credit bureaus aren't being forced to delete this information. They're doing it voluntarily, in large part because these public records weren't properly verified or updated, generating many consumer complaints and disputes.

The credit bureaus might have found a way to keep the records if the data were overwhelmingly valuable to lenders, their primary customers. But that doesn't seem to be the case.

The credit bureaus, creditor scorers FICO and VantageScore Solutions and mortgage buyer Fannie Mae have all said that removing the data will have at most a minor impact on lenders' ability to predict risk.

Almost all — 92 percent — of people who have liens or judgments in their credit reports have other negative information in their files, says Ethan Dornhelm, FICO's vice president for scores and analytics. That's why independent studies by FICO and VantageScore Solutions found that scores went up an average of just 10 points when liens and judgments were removed.

A much smaller group of people — about 1 million of the 200 million people with FICO scores — whose credit reports are otherwise clean could see their scores rise more.

Not all players think the change is benign. A representative of LexisNexis Risk Solutions says the outcome could be "catastrophic." The company is marketing reports with the deleted public records data to lenders.

The data and analytics provider found that people with judgments and tax liens on their credit reports are more than five times as likely to default on a mortgage as people without those records, says Tim Coyle, senior director for real estate and mortgage at LexisNexis Risk Solutions.

Why did FICO and VantageScore Solutions reach a different conclusion? LexisNexis compared people with negative public records to those without. The credit scoring companies used databases stripped of the questionable records, then calculated scores based on the information that remained.

WILL LENDERS MOVE THE GOAL POSTS?

It's an open question how many of the affected folks will look more creditworthy than they actually are and how many are actually good credit risks who were victimized by erroneous data.

Lenders will find out by monitoring default rates and they will adjust their lending criteria accordingly, says Jeff Richardson, a VantageScore Solutions spokesman. That could mean raising cutoff limits for acceptable scores — which means in turn that those who see their scores improve only modestly could find the loans they want still out of reach.

Lenders' ability to course correct varies. Credit card lenders, for example, can quickly ratchet down credit limits, raise interest rates on new balances or accept fewer applicants. Mortgage lenders, by contrast, make much larger loans that can take months or years to start going bad in significant numbers.

 

 

 

Buncha BS. Fock them.

 

Hope they get their credit high enough to get new loans to fock the banks with

[Cdub100 3,367]

What about that $3.50 Blockbuster late fee I refuse to pay?

[edjr 5,547]

What about that $3.50 Blockbuster late fee I refuse to pay?

 

[Djgb13 2,338]

I had an amount of $400 from a dam US cellular cellphone back when I was 18 that I closed the account on that got on my credit. They "claimed" I never paid them the final amount yet when I closed my account I paid off all remaining balance as well as ANOTHER dam bill that came in a couple months later. They kept saying I still owed more. I think to this day they still say that but I'm not paying them anymore dam money

[RaiderHaters Revenge 3,566]

I had an amount of $400 from a dam US cellular cellphone back when I was 18 that I closed the account on that got on my credit. They "claimed" I never paid them the final amount yet when I closed my account I paid off all remaining balance as well as ANOTHER dam bill that came in a couple months later. They kept saying I still owed more. I think to this day they still say that but I'm not paying them anymore dam money

 

I had a water bill same way from like 25 years ago

 

also had a Montgomery Wards CC and a CompUSA CC, but figured when they went BK, I shouldn't have to pay them so I didnt

[wiffleball 4,631]

I think this is a good thing overall. America's pretty jacked up when it comes to credit. A lot of my friends who are European don't understand that they can't get credit coming over here when they have perfectly good jobs. Others don't understand why it is that they can't get a job because the credit is poor. I've talked about this before. It's a vicious cycle especially in the economy of 2009. You lose your job your credit goes to s*** you try to get another job and can't get one because your credits going to s***. Then, try to use cash and the government treats you like a f****** drug dealer.

[WhiteWonder 2,171]

what about the black marks on your pecker?

[WhiteWonder 2,171]

[titans&bucs&bearsohmy! 2,745]

It's actually kind of retarded. Judgments and liens are the most important thing on a credit report, Because those people can seize money and assets. Kind of important to know if you are lending someone money that other people can empty their bank account or seize the same thing you are using as collateral at any time.

 

It's public record anyway.

 

What needs to go away is the capability of any ass hole to report whatever they want and inquire whenever they want. It is a major focking pita to get that stuff off your report.

[Djgb13 2,338]

It's actually kind of retarded. Judgments and liens are the most important thing on a credit report, Because those people can seize money and assets. Kind of important to know if you are lending someone money that other people can empty their bank account or seize the same thing you are using as collateral at any time.

 

It's public record anyway.

 

What needs to go away is the capability of any ass hole to report whatever they want and inquire whenever they want. It is a major focking pita to get that stuff off your report.

This +1000

[Kanil 519]

It's actually kind of retarded. Judgments and liens are the most important thing on a credit report, Because those people can seize money and assets. Kind of important to know if you are lending someone money that other people can empty their bank account or seize the same thing you are using as collateral at any time.

 

It's public record anyway.

 

What needs to go away is the capability of any ass hole to report whatever they want and inquire whenever they want. It is a major focking pita to get that stuff off your report.

 

From what I read, it's not ALL judgements and liens, right? It's just ones that don't actually have solid identifying information. I know for a long time my mom was fighting crap from someone else with the same name as she had who lived like 2 miles away. Could be a good thing.

[parrot 789]

Boy, I wish I was black and named Mark.

[edjr 5,547]

Boy, I wish I was black

 

Said no one ever