topic Re: CA State Tax lien error - how to remove from credit report in General Credit Topics

CA State Tax lien error - how to remove from credit report

Anonymous — Fri, 19 Jul 2013 02:50:05 GMT

About once a year, I try to find solution - so far none. Please be the person who can figure this out.

April 2006, State of CA incorrectly imputed taxes because I had a condo there and therefore must have CA income, even though I wasn't living there. March 9, 2007, they agreed - "oops, my bad" and released the lien. Therefore this lien will never be paid off because it shouldn't have been there in the first place. In fact, State of CA refunded all $ they collected.

State of CA has been helpful in that a potential creditor will call them and, when they have time, they will research and verify that the lien should not exist. But they have no procedures to remove "lien errors."

So, the lien shouldn't have been there, but it persists on my credit report. How can I get this removed? Every year or so, I add a consumer comment to my credit files to explain the issue. Every year, the comments disappear and I have to reinstate them - but the comments don't seem to help - not sure anyone reads them.

Help ! [I briefly considered sending them a check for $0 to try to get them to modify the status - but that risks putting recent activity on the lien, which could just extend the black mark longer]

Re: CA State Tax lien error - how to remove from credit report

RCOH — Fri, 19 Jul 2013 03:44:42 GMT

Do you have supporting documentation to prove the above? Paperwork where the Lien $ was returned to you, written proof of the states mistake etc.? This would all help.

I just recently, within the last week, successfully had a Lien removed after filing a dispute with EQ. They had only marked it as 'released' and didn't remove even though it was way out of the SoL AND had been paid way over the SoL mark.

I filed a complaint with the Consumer Financial Protection Bureau on 7/15 and had a response by 7/17...

"Company responded

Equifax Credit Report said:
Explanation of closure

Please advised Equifax deleted the tax lien. Written confirmation was mailed out on 07/16/13.

Relief

Equifax deleted the tax lien."

I had all supporting documentation as in the case files with proof of when the Lien was first issued, when it was paid etc. You have the option to upload copies of all documentation to support your claim when filing. Without proof and help most CRA will wait for the SoL to run out from what I have seen.

Get the proof and file a complaint, it worked for me.

Re: CA State Tax lien error - how to remove from credit report

Anonymous — Fri, 19 Jul 2013 03:57:35 GMT

OMG - yes I have all the proof. I had tried with EQ before unsuccessfully. But never filed anything with Consumer Financial Protection Bureau. I will definitely try this. I just couldn't find anyone to look at the information. It's really frustrating to have the State sympathize with you and then say, it's too bad that's the way the process works with liens - you can enter a reversing transaction but you can't make the transaction go away.......

THANK YOU VERY MUCH - ******

Re: CA State Tax lien error - how to remove from credit report

RCOH — Fri, 19 Jul 2013 04:06:21 GMT

You're welcome and they are wrong! If you have the proof, the CFPB should be able to help in my experience. CRA don't like it when the Fed is on their doorstep knocking. I tried the dispute route first but didn't have anymore luck then you did.

Scan your proof and upload all documentation.

Good Luck!

Re: CA State Tax lien error - how to remove from credit report

RobertEG — Fri, 19 Jul 2013 07:30:39 GMT

The problem with disputing public records is that the CRA can and will verify based only on its apperance in the public record.

The state may not even have been the furnisher of the reporting to the CRA, and thus may not even be involved in referral by the CRA for their investigation.

Bottom line is that the FCRA dispute process is not a fact-finding process that compels anyone to produce proofs.

And disputes over public record information are exempted from the direct disipute process.

In my opinion, the most direct approach would be to bring civil action in small claims court, thus garnishing the legal discovery rights thru the court.

Re: CA State Tax lien error - how to remove from credit report

Anonymous — Fri, 19 Jul 2013 15:13:56 GMT

Hmmm. The lien is a CA state tax lien. The last time I lived in CA was about 5 years before the lien. I moved to Massachusetts and have been here ever since.

Can I use the small claims process from out of state? And, then, if it is unclear who notified the CRA, whom do I sue?

Thanks very much

Re: CA State Tax lien error - how to remove from credit report

RCOH — Fri, 19 Jul 2013 15:33:34 GMT

I agree, that is why they only marked my dispute as released and didn't delete.

You could file civil action but that does take $ and time.

Myself as well as others in this forum have been able to get many things removed just by filling a report with the CFPB.

It's up to the OP but IMO, just getting it removed is good enough for me. It only took me two day's and it was gone.

Re: CA State Tax lien error - how to remove from credit report

justrock — Fri, 19 Jul 2013 22:27:58 GMT

CFPB is the way to go. I just had a paid NYS tax lien removed from all my reports by filing a complaint. The lien was reporting twice and I only asked to have my record corrected since one lien was valid. All 3 CRAs removed both entries (I guess that was easier than doing the legwork to see what mistake they had made).

Upload your supporting documentation to the CFPB website and let them go to work. They do not mess around. It only took two weeks for the liens to be off my credit report.

Re: CA State Tax lien error - how to remove from credit report

Anonymous — Fri, 19 Jul 2013 22:41:04 GMT

Thank you to justrock, RCOH and RobertEG for your comments. It's just great to have some practical advice from people who have been there. Over the past few years, I have felt so stranded on this one, not to mention the fact that it is costly. So kudos and much appreciated - I'll report results