How Will Consumer Tax Lien Data Changes Affect Commercial Reports?
Wednesday, April 18, 2018
April 16 was the deadline for Experian, Equifax and TransUnion to remove tax lien data from consumer credit reports under National Consumer Assistance Plan requirements. To help clarify what these changes mean for commercial credit reports, Brodie Oldham from Experian recently addressed a few important issues.
Core Credit Data
“The data that had the most impact from the [NCAP] study was public record data; judgments and liens for consumers that weren't updated or didn't have all of the personal identifying data necessary to meet the guidelines.”
Effect on Commercial Credit Data
“The impact with the public record information is really when we're evaluating a business owner guarantor using the consumer credit information where public record data has been removed.”
Effect on Commercial Blended Scores
“With the blended scores you would expect that if we remove some of the consumer derogatory information in public records that the score would go up. And we saw a mean lift to about .03 percent, so very small. In the performance of the blended generic credit scores in their evaluation and capture of those delinquent accounts.”
See Experian’s blog post for more detailed information.