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New Contributor
goldenyears
Posts: 52
Registered: ‎02-08-2012

State Tax Lien - won't report paid

I have a KS state tax lien on my cr from 2009.  I attempted to have them vacate based on many errors and went around with them as they made up excuse after excuse then just flat out refused.  I am educating myself on how to write and file a request myself but...

 

During this ongoing back and forth, I ordered new credit reports.  My lien is showing still active (it was given documents stating it is satisfied immediately after it was issued, in lieu of vacating).  I contacted the state and was told "we don't report those as paid you will have to file a dispute with the credit reporting agencies."

 

Before I write my disputes in a fit of ill-informed self-righteousness, I thought I might confirm here with the 'been there, done that' crowd; anyone knowledgeable enough about FCRA reporting requirements to confirm that failing to report a change of status is a violation? If so, is that something I should mention in my dispute?  Should I just forward the satisfaction of judgment and request an update or should I go all in and request they delete?  

 

I have never filed a dispute, so want to make sure I don't unnecessarily cause problems with my scores.  I'm not concerned about approvals, I can't move forward with a refinance of my mortgage without a lot of drama until this is resolved in any case.


Starting Score: 523 TU: 3/15/2012
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Established Contributor
electra
Posts: 573
Registered: ‎10-21-2012

Re: State Tax Lien - won't report paid

Are you trying to have it be changed to paid/released status or have it removed?  Those are two different things.  Having it changed to paid will not impact your score but will help you with a mortgage review.



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goldenyears
Posts: 52
Registered: ‎02-08-2012

Re: State Tax Lien - won't report paid

I am primarily hoping to get it marked as paid, for re-financing my mortgage later this year.  I will continue to work on the vacation through the courts though.  BUT if there is a change they would consider deleting, I wouldn't turn down the chance to go for it.


Starting Score: 523 TU: 3/15/2012
Current Score: 710 EQ 05/25/2014
Next Goal Score: 760 by Dec 2014


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Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008

Re: State Tax Lien - won't report paid


goldenyears wrote:

I have a KS state tax lien on my cr from 2009.  I attempted to have them vacate based on many errors and went around with them as they made up excuse after excuse then just flat out refused.  I am educating myself on how to write and file a request myself but...

 

During this ongoing back and forth, I ordered new credit reports.  My lien is showing still active (it was given documents stating it is satisfied immediately after it was issued, in lieu of vacating).  I contacted the state and was told "we don't report those as paid you will have to file a dispute with the credit reporting agencies."

 

Before I write my disputes in a fit of ill-informed self-righteousness, I thought I might confirm here with the 'been there, done that' crowd; anyone knowledgeable enough about FCRA reporting requirements to confirm that failing to report a change of status is a violation? If so, is that something I should mention in my dispute?  Should I just forward the satisfaction of judgment and request an update or should I go all in and request they delete?  

 

I have never filed a dispute, so want to make sure I don't unnecessarily cause problems with my scores.  I'm not concerned about approvals, I can't move forward with a refinance of my mortgage without a lot of drama until this is resolved in any case.


As the furnisher of the information, they are required by the FCRA to report accurate information.  Reporting as paid is part of that.   If they do not they are in violation of the FCRA.

 

It is NOT your responsibility, it is theirs to report correctly.

 

If you dispute it there is a big chance it will come back verified, leaving it still showing unpaid.

 

You can file a direct dispute with the tax assesor or whomever filed it.  That is FCRA 623a(8).  Not only must they investigate and correct any errors. they must also notify you within 30 days of their findings.

 

 

New Contributor
goldenyears
Posts: 52
Registered: ‎02-08-2012

Re: State Tax Lien - won't report paid

Thanks, guiness - I agree it is not my obligation.  This is the office, however, that is refusing to vacate a judgment on an amount I didn't owe (ever) when I was making the final payment on an agreed plan and I never received a summons.  The clencher is, the court date fell after I had made my final payment.  It's a nightmare, and I don't have high hopes of getting this resolved through them by July.

 

I am tempted to add this to my list of reasons to vacate and just cut to the chase with them.


Starting Score: 523 TU: 3/15/2012
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Next Goal Score: 760 by Dec 2014


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Established Contributor
electra
Posts: 573
Registered: ‎10-21-2012

Re: State Tax Lien - won't report paid

Tax liens are not reported to the CRA's by the State or Federal government.  As I understand it, the way they end up on your reports is that there are 3rd party companies such as lexisnexis who collect public record information (such as judgements and liens) from the courts and report them to the CRAs.  When the State tells you they do not report to the CRA's they are speaking the truth.  Neither do the courts/recorders report.  If you'd like confirmation of this, simply contact the court and ask them.    What the State DOES need to do is to report the lien as paid to the court.  This will not update it automatically with the CRAs.   What I would do if I were you and trying to get a mortgage is to ask the state to give me an official release of tax lien notice and then show that to the mortgage lender as well as file a dispute with all the of the CRAs who show the lien and send them the paperwork as proof that the status should be updated to paid.    You can go back and fight with them later to have it withdrawn if you have a case (as it sounds like you do) that it should never have been filed.

 

Good luck!!



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Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008

Re: State Tax Lien - won't report paid

[ Edited ]

Two different topics here.  OP said they won't report as paid, not who reported to the CRAs.

 

It is the tax assessors responsibility to report it as paid.  Period.  If they did that it should be showing as such on the CR.

 

They did not say we don't report them as paid to the CRA, they just said they don't report them as paid.

Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008

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