Stricter matching requirements of public records to consumer credit files could mean higher credit score for some consumers. These new requirements will likely help consumers by preventing erroneous data from appearing on credit files from public records. Additionally, it could help with higher credit scores of some by omitting some civil judgments or tax liens from their credit score.
Enhanced Standards For Credit Reporting Of Public Records
These enhanced standards for fair credit reporting were scheduled to be enacted July 1, 2017. The enhanced PII (Personal Identifying Information) standards require name, address, and Social Security Number or Date of Birth for the public record data utilized in credit reporting databases.
What does this mean to your credit score?
This means that if you have a judgement or lien and the required personal identifying information is not recorded in the damaging public record, the judgement or lien may no longer be counted against you on your credit score. Thus, your credit score will increase. Additionally, if your credit score is being lowered by erroneous information taken from public records, that information may no longer impact you if your proper PII is not recorded with it in the public records.
Will this impact everyone with a judgement or lien?
This will not impact the credit reporting of judgments or liens which are recorded in public record with PII that meets the new requirements.
While this may provide relief in the form of higher credit scores for some, it is still important to monitor and protect your credit score. This includes taking any necessary steps to deal with debt issues, including judgments and tax liens.
NCLC (National Consumer Law Center) – Big Changes for Credit Reports, Improving Accuracy for Millions of Consumers
CDIA (Consumer Data Industry Association) – March 13, 2017
Statement Consumer Data Industry Association