Millions of Americans, including many Operation HOPE clients, will soon see a lift in their FICO scores as the national consumer reporting agencies move to eliminate two major sources of negative information about borrowers from their records: tax liens and civil judgments. Beginning July 1, Experian®, Equifax® and TransUnion® will change the standards of the public record data they maintain, requiring each citation to include the person’s name, address and either their Social Security number or date of birth. Most civil judgments and tax lien records do not meet the new standards, and will be eliminated from reports.
This move is part of the National Consumer Assistance Plan, a comprehensive series of initiatives intended to evaluate the accuracy of credit reports, the process of dealing with credit information and consumer transparency. In addition to benefiting borrowers with negative public records, the new standards will also help thousands of people who have worked to have incorrect information removed from their files.