Denver, CO- Beginning July 1, 2017, some Americans with black marks on their credit report will see improvement in the credit ratings as tax liens and civil judgments are taken off. The new requirements are intended to protect consumers from having their credit scores brought down by incorrect information.
Credit Bureaus Remove Black Marks and Tax Liens
The reporting requirements taking effect were recommended by the Consumer Financial Protection Bureau. The CFPB noted that the top complaint consumers have is incorrect or inaccurate information on their credit reports. The new rules for FICO scores will ensure borrowers aren’t getting low scores for credit information that cannot be confirmed.
Experian, Equifax, and TransUnion will remove civil judgments and tax liens that don’t have to meet the minimum requirements for correct identification which include social security numbers, dates of birth or liens and judgments that haven’t been updated in the past 90 days. Put simply, the CFPB requires credit agencies to make sure their records are accurate, and consumers aren’t given black marks for no reason.
Credit agencies estimate that some consumers will see their credit ratings will increase 10 to 20 points, but they are critical of the rule. Lenders argue that could have negative ramifications in the long-term and could lead to higher interest rates if more borrowers default on their loans, CNBC reports.
The process of removing the black marks began on July 1, 2017, and could take several weeks for all judgments and tax liens to be removed from about 14 million credit reports.
Tax Liens in Colorado
The Internal Revenue Service, the Colorado Department of Revenue, and a municipality could place a tax lien on you if you failed to pay income or property taxes. A tax lien, if the information is verified, is supposed to be removed from your credit report once you’ve paid the IRS or Colorado Department of Revenue, but some liens and civil judgments remain on a person’s record for several years.
A tax lien can be hard to resolve, so it is better to let a tax attorney help you out if you are behind on your taxes. If you are struggling with property taxes, contact one of the attorneys at http://coloradorealestatelawyer.org/ and see what options you have to stop a tax lien. The attorneys at Semler & Associates, P.C. can assist you with a range of civil matters including tax and real estate issues.
Consult with a Tax Attorney in Denver
If you get a notice from the IRS or Colorado Department of Revenue, you need to speak to a tax attorney in Denver right away. They will help you resolve your tax problem early, so you don’t have to worry about a tax lien, wage garnishment or levy on your bank account. You get the help you need at USAttorneys.com.