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Why some consumers will see their credit scores jump this July

On Behalf of | Mar 16, 2017 | Consumer Protection Law, Firm News |

It goes without saying, even here in sunny Florida, that everyone’s favorite season of the year is summer. That’s because these three long months promise everything from long days and blue skies to baseball and school breaks.

As if the prospect of summer wasn’t enticing enough, those individuals struggling with the repercussions of negative information on their credit reports — difficulty securing loans, expensive loan conditions, etc. — will be receiving a much-needed reprieve come July 1.

Indeed, on this date the nation’s three main credit reporting agencies — Equifax, Experian and TransUnion — will remove and prospectively prohibit negative information relating to tax liens and civil debts, unless the person or entity filing the data can provide the following information:

  • Consumer’s name;
  • Address and,
  • Social Security Number or date of birth

While this might not seem like that big of a victory for consumers at first glance, consider that predictive analytics giant FICO has found that while the negative impact of having a tax lien on a credit report eventually lessens, its short-term presence can be “quite serious,” subtracting as many as 100 points from a credit score.

Consider also that experts indicate that the effect of the move will be immediate, such that people’s credit scores will see a considerable increase come July 2.

As for what brought this all about, the credit can be attributed to the Consumer Financial Protection Bureau, which fields seemingly endless consumer complaints about incorrect data on credit reports. Specifically, the agency exerted considerable pressure on Equifax, Experian and TransUnion to ensure that any negative information they choose to report is, at the very least, accurate.

Please remember that if you are dealing with relentless creditor harassment or have other consumer protection concerns to consider speaking with a skilled legal professional committed to protecting your rights.