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Effect of Fed Tax Lien Removal

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kshurika
Frequent Contributor

Effect of Fed Tax Lien Removal

I chose to do a new post, rather than a third update to my post from Monday . Last July, my federal tax lien was removed from both EQ and EX, but TU refused to remove it. Another agreement was reached recently to remove all tax liens from CRs. Early Monday morning, I was notified by WalletHub that the lien had been removed. No other service - paid or unpaid - knew about the removal. CO's CreditWise got it later that day. Internet news reports conjectured some people's credit scores might go up by "as much as 30 points". Some credit experts disagreed.

Well, today, my TU Fico 8 jumped up by 91 points and rests just beneath 800. Until now, my TU score was deeply restrained by the lien. Now, it's my highest score by far.

My 2 new cards, my 130% jump in total credit and my lower Util. haven't even reported yet. I'm expecting another score boost, soon.

It's good to keep tax liens off your credit reports.

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2 REPLIES 2
Anonymous
Not applicable

Re: Effect of Fed Tax Lien Removal

That's awesome! Did you have to wait 7 yrs or did you get it removed another way? Congrats Smiley Happy

Message 2 of 3
kshurika
Frequent Contributor

Re: Effect of Fed Tax Lien Removal

Federal tax liens don't come off after 7 years. Last year, after a 2015 lawsuit by the N.Y. Attorney General and by agreement with the CFPB, the CRAs agreed to take a number of collection judgments and over half of tax liens off of CRs, due to inaccurate information. TU refused to remove most tax liens and most of us could only find possible relief by filing a complaint with the CFPB.

https://www.creditrepair.com/blog/credit-repair/many-tax-liens-and-civil-judgments-to-be-removed-fro...

This year, the CRAs agreed to remove the tax liens that hadn't been taken down in 2017. This was due to begin on April 16th and my lien on TU vanished that morning.

https://www.forbes.com/sites/zackfriedman/2018/04/16/credit-score-increase/

So far, I've paid about .00075 of my lien and have been in litigation for over 7 years.
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