Critical data on tax liens and civil judgments is no longer included as part of the standard consumer credit report issued from all three major credit bureaus. This information has been an important consideration in underwriting. By removing it from credit reports, and consequently credit decisions, lenders may be exposing their businesses to costlier risks than they realize. For example, in our study, consumers with liens or judgments (L or J) represented 6% of the approved population but accounted for 15% of the defaulting consumers.¹
Our Liens and Judgments Impact Infographic highlights the key findings from our 2019 Liens and Judgment’s Impact Report. Click here to access the full report.
1 In this study, a defaulting consumer is defined as an individual who has gone 90 or more days past due on any account or an individual that has a major derogatory action on their account such as bankruptcy or being sent to internal collections since the account opening in August of 2017.
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