Good News May Be Coming To Your Credit Score
There may be good news for people worried about their credit scores. Starting July 1st, the nation’s three largest credit-reporting agencies will exclude tax liens and some civil debts from their reports.
According to the Consumer Data Industry Association, a trade association for Equifax, Experian, and TransUnion, “the credit agencies will exclude the tax liens and civil debts if reports on those obligations don’t include a consumers’ names and addresses, as well as Social Security numbers and or dates of birth,” reported USA Today.
“Equifax, Experian and TransUnion continually seek ways to ensure the data they maintain on their consumer credit files is accurate and current, to best serve consumers and the needs of their business and government customers,” CDIA Interim President and CEO Eric Ellman said in a press statement.
There is debate, however, on whether this will be a win-win for consumers. Chi Chi Wu, a staff attorney for the National Consumer Law Center, said, “It’s a good thing. Anytime consumers are not being harmed by incorrect data is a positive.” But on the downside, these changes may cause more oversight of the credit-reporting agencies by the Consumer Financial Protection Bureau. According to Nessa Feddis, senior vice president for consumer protection and payments at the American Bankers Association, “The bottom line is this is not consumer-friendly. People will get loans even though they may not have the ability to repay them.” This means loan-screening could become tighter and credit actually more expensive.