{"id":9029,"date":"2021-04-30T09:00:00","date_gmt":"2021-04-30T15:00:00","guid":{"rendered":"https:\/\/www.lexingtonlaw.com\/blog\/?p=9029"},"modified":"2024-11-13T15:01:49","modified_gmt":"2024-11-13T21:01:49","slug":"how-will-you-be-affected-by-new-reporting-standards-of-public-records-on-your-credit-reports","status":"publish","type":"post","link":"https:\/\/www.lexingtonlaw.com\/blog\/negative-items\/how-will-you-be-affected-by-new-reporting-standards-of-public-records-on-your-credit-reports.html","title":{"rendered":"Public records on credit reports"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. <\/em>See Lexington Law\u2019s editorial disclosure for more information.<\/em><\/a><\/p>\n\n\n\n

If you\u2019ve ever looked at your credit report, you\u2019ve probably noticed a section called \u201cpublic records.\u201d These are entries that are also on file with local, county, state or federal courts. Keep reading to learn more about which public records appear on credit reports.<\/p>\n\n\n\n

What Are Public Records?<\/h2>\n\n\n\n

Public records are documents or pieces of information that are not considered confidential. Some examples include arrest records, marriage certificates and some court records. These are records that other people or entities could look up about you, as the information isn\u2019t private or protected.<\/p>\n\n\n\n

In the context of your credit report,<\/a> historically, only three types of entries were public records: tax liens, civil judgments and bankruptcies. Now, only bankruptcies should show up as a public record on an individual\u2019s credit report.<\/p>\n\n\n\n

The Public Record Entries<\/h3>\n\n\n\n

First, it\u2019s essential to understand the three types of public record entries that can impact your credit report.<\/p>\n\n\n\n

A tax lien is a law-imposed lien upon property for the payment of taxes. Typically, a tax lien occurs when a person fails to pay taxes owed on property (personal and other), income taxes or other forms of taxes.<\/p>\n\n\n\n

A civil judgment is a legal ruling against a defendant in a court of law. It refers to a judgment on a noncriminal legal matter and often requires the defendant to pay monetary damages.<\/p>\n\n\n\n

Bankruptcy is a legal process in which people or other entities who cannot repay debts to creditors try to seek relief from some or all of their debts. In most jurisdictions, bankruptcy is usually imposed by a court and is often initiated by the debtor.<\/p>\n\n\n\n

Understanding the Updated Public Record Policy<\/h2>\n\n\n\n

In 2017, the National Consumer Assistance Plan (NCAP) went into effect and changed how data is collected for civil judgments and tax liens before these entries appear as public records on credit reports. The act was initially launched in 2015 by the three major credit bureaus to modify credit reporting rules and set stricter standards. These new standards would ensure that the data found on credit reports are more accurate and up to date.<\/p>\n\n\n\n

There are two primary ways this act affects how credit bureaus obtain and report tax lien and court judgment data on consumer credit reports. First, for either of these types of entries to appear on a credit report, the public record must contain a person\u2019s:<\/p>\n\n\n\n