Experian®, Equifax®, and TransUnion® have announced that they will be enacting their National Consumer Assistance Plan (NCAP), which will affect the three credit bureaus’ reporting of Public Record data. According to Sandy Anderson, Senior Vice President of Client Operations at Experian®, the reason for this change is because they have determined “that some public record data does not meet minimum data standards and service levels for collection and timely updating.” The following standards (or PII) for a record to appear on a consumer credit report will be applied to new and existing Public Record data on July 1, 2017:

  1. The minimum is required of consumer identifying information: name, address, social security number and/or date of birth
  2. The minimum frequency (at least every 90 days) of courthouse visits to obtain newly filed and updated public records is required

What Does this Mean?

While Experian® and the other bureaus “anticipate no change to bankruptcy public record data” due to the fact that bankruptcies are filed with the minimum required consumer ID information like social security numbers (standard #1), this will affect civil judgment public record data. According to Experian®’s preliminary analysis, about 96% of civil judgment data may not meet the new standards, and it is likely that civil judgments will not be part of any of the three major credit bureaus’ core consumer credit database!

Impact to the FICO® and VantageScore®

VantageScore® Solution’s analysis (considering the worst case scenario) showed that a little over 8% of the scorable U.S. population will have a change in score once these new standards go into effect. The average increase in score showed to be around 10 points.

FICO® has performed an initial analysis and believes that the impact of this change will be moderate. However, we will not know the full extent until FICO® releases their complete impact analysis report in the next few months.

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