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CFPB Quarterly Consumer Credit Trends report

The Bureau has released its ninth quarterly consumer credit trends report. This edition of the report is a retrospective on the removal of tax liens and civil judgments from credit reports that began July 2017. The report looks at the National Consumer Assistance Plan's public records provision’s effects on the relationship between credit scores and consumers’ credit performance for consumers that had a civil judgment or tax lien removed from their credit report and those that did not. Key findings include:

  • Since the February 2018 quarterly report, the nationwide consumer reporting agencies (NCRAs) have taken further steps to remove public records. Almost half of tax liens survived the July 2017 removals, but by April 2018, none remained. Bankruptcies are now the only type of public record on NCRA credit reports.
  • Consumers with public records tended to have lower scores than those without. In June 2017 (before the NCAP’s changes took effect), half of consumers with judgments or liens had Deep Subprime scores (below 580).
  • Consumers with judgments or liens had a much higher overall delinquency rate than those without, but this difference is smaller when looking at consumers in the same credit score group.
  • Looking within credit score categories, the difference in delinquency rates between consumers with judgments or liens and those without stays largely constant across time periods. This evidence suggests that the public records provision of the NCAP did not have a large effect on the relationship between credit scores and consumers’ credit performance.
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