National Consumer Assistance Plan 2017
National Consumer Assistance Plan 2017 Update – In 2014 the New York Attorney General and the three major repositories entered into an agreement called the national consumer assistance plan. That plan was going to be rolled out over three years in July of 2017 that plan is going to be fully implemented and it’s going to have major implications on people’s credit reports. One of the things that it addressed was traffic fines or library overdue notices showing up on credit reports. The New York Attorney General felt like that wasn’t really a debtor obligation so it really shouldn’t be on credit reports
In 2016 the repositories sent out a cease and desist order to all of the collection companies telling them not to report that type of debt any longer. The other big news is that medical debt will now be held for 180 days before being reported to the repositories. This should give people plenty of time to work out insurance disputes before things start to show up on their credit report.
The agreement also announced that the repositories would be beefing up the dispute departments with more staff to better handle disputes. An additional free credit report will be provided to consumers that dispute something on their report to validate the correction was made.
In the last 60 days, they made a huge announcement on a public record.
The trade organization for the credit Industry issued a letter that said that public records were no longer going to be reported without 4 identifying factors. That does not mean that all public record is going away it just means that the information that does not meet the minimum standard will no longer be reported and I would expect their townships and repositories to come together fairly quickly on resolving how this information is being reported versus what’s actually available out there to the general public.
In the meantime, some of the credit bureaus are trying to add additional public record databases like LexisNexis to the credit file. I think that that’s just going to create more problems because you’re substituting one inaccurate set of data for another one. LexisNexis is not really reliable source of information. The consumer can actually block their LexisNexis file.
Overall a huge win for consumers much more accurate information moving forward on credit reports.
It is very important for the consumer to disclose any debt when they’re applying for a loan. This is on the consumer, not the lender. The lender is going to do everything they can to validate what the consumer says and investigate as much as the Lender can but if they can’t ultimately find anything and additional debt exists. That means that the consumer could be prosecuted for that and that’s how it should be.
Please do me a favor, share this out as much as you can let’s get the word out July 2017 everything goes into effect it’s going to beep huge. I’m going to have links down below for all of the information that I talked about here and a new book is coming out shortly watch the website www.theCreditGuy.TV for an announcement on that.