Tax Lien Question

[otama]

Hi all,

I found this board while doing some research on a tax lien, and I'm glad I did.

I had a tax lien placed against me last year by the State of Ohio, but when I tried to prove to them that I never received any notices indicating that I owed this money, as expected, they told me "oh well, pay us the money you owe us."

As I stated above, I was not aware that I owe any money until I received a certified letter from a law firm that represents the state, as well as at least a dozen other letters at the same time. The letter that I received from the law firm had my correct mailing address, but the other letters did not.

For example, my street address is 850, but all the letters were being sent to 805.

I have since paid this debt and have received a release of debt from the state, so now all I have to do is to mail copies to the three credit agencies.

My questions for you all are:

1 - Is it feasible for me to have this negative mark against me removed considering I can prove that all notices were being sent to the wrong address?

2 - I promptly made payment once this debt was brought to my attention, and received the release just two weeks ago. How long before my FICO score will be able to rebound from this?

I apologize for this being so long, but this really angers me because my FICO score is suffering.

[Drewsm0m]

There is some good news and a little bad news. I had the same problem with a tax lien. what a nightmare. . Get a copy of the release and send a copy to each credit bureau with the release info highlighted. The good news is that Experian and Equifax delete it from your file when released. The bad news is that Trans Union does not, however, the updated status will report and your score will go up. States have what they call Soveriegn Immunity (sp?) and there is little you can do to get them to behave. Just be glad it is over and done with.

[otama]

Thanks for the quick response, it is much appreciated.

Yes, I am very much relieved that this nightmare is over. Now I just need to work on getting the copies to the three agencies, but I still have to pay $78 in court costs to Ohio. The reason for this is that I have to mail the original release back to them, along with a copy. They in turn will date stamp the copy and send it back to me. Once I have the copy back from Ohio that is when I will be sending it to the agencies.

Sorry, another question:

Do I need to include the cancelled checks that indicate that I have paid the amount in full, or will the release be sufficient?

Thanks again.

[Drewsm0m]

All you need is the release. Don't forget to highlight the release portion when you mail to the credit bureaus or they may miss it the first time through.

[otama]

Sorry, but I have two additional questions.

1 - Is there something that I can use as a point of reference in case Experian and Equifax refuse to remove it from my credit report?

2 - Will Trans Union update my credit report to indicate that the debt was paid in full and the lien was released in June, or will they reflect it to indicate August, since that is when they are receiving the paperwork from me?

[Drewsm0m]

Usually Equifax and Experian are pretty good about removing it from your report. They should send you an updated report in about two weeks after they get your letter and proof. Trans Union will update the report to reflect the month it was paid, but it is better to point it out to them in your letter and high-light the release date. The less they have to think, the better.

[ZphisticatedLady]

I'm confused about a "release".

I just paid a tax lien in May and I was sent a letter stating the debt was satisifed, but I don't believe it says released. The lien wasn't showing on my report, but once it was satisifed, my credit report was updated with this lien and the satisifed status.

Is there any hope to remove it now that it's paid?

[Drewsm0m]

Equifax and Experian usually will delete an item that has been paid like this. TransUnion will not. I have not found a way to get it off my TransUnion. If it appears on your other two, write them and ask that it be removed as it is paid. When a lien is paid, the holder of the lien releases it and files a satisfaction with the court. On that sheet is the release date and it should be noted that way. Check your state to see if you have a website listing real estate records. If so, you might be able to pull up the release online. If not, go to courthouse and request a copy. It might cost you a buck or two, but it will be worth it.

[Methuss]

States have what they call Soveriegn Immunity (sp?) and there is little you can do to get them to behave.

Soveriegn immunity sin't a blanket exception for States to misbehave. People sue State governments all the time to acheive redress for wrongs committed by the State or by the courts. Since the FCRA is a federal law, States and courts themselves are not immune to it. Nor would a State be immune to a civil charge of civil rights violations. As their action (or inaction) causes you to be deprived of property, they may be liable. The trick is you have to sue the agency responsible and the current head of that agency.

Truth be told, it is probably not the court that made this problem for you but one of the court trolls, such as LexisNexis. These companies scourt the courthouses for cases to add to their database then sell the information to the credit reporting agencies. Frequently they report judgments but not the releases to the CRAs. You generally have to push really hard with the CRAs to get them to admit who they are buying their information from, but once you do, you can slam the offending troll for false reporting.

[ZphisticatedLady]

I'm confused, I thought I read that paid state tax liens will remain on your report for 7 years? They can be removed by writing the CRA's?

[Drewsm0m]

Equifax and Experian will delete the references to the liens that have been paid. I think that is only the case with tax liens. At least this has been the case with the ones I have seen (mine included). There are no guaranties in the world, but it is worth a try. I know about 5 other people who paid tax liens who have said that Equifax and Experian delete the reporting once they confirm paid.

[Methuss]

I'm confused, I thought I read that paid state tax liens will remain on your report for 7 years? They can be removed by writing the CRA's?

Keep in mind that reporting is voluntary. There are no laws that say a CRA has to report something they have in their files. The laws only say what they cannot report. So if EX and EQ have an internal policy not to report paid tax liens at all, then great. Better for the consumer, but they aren't doing anything illegal. As for TU, the law only says that if they choose to report it, they may only do so for 7 years after the lien is paid.

[ZphisticatedLady]

Thanks for the response.

I received a letter from the state which said:

Release of Maryland Tax Lien

To the clerk:

Please enter the above Notice of Lien of Judgement for Unpaid Tax dated January 12, 2002 and in the amount of $1,298.82 as "SATISFIED"

Note to Taxpayer: The original RELEASE has been forwarded to the Courthouse show above to be recorded in the court records. You may want to request copies of your credit reports from the major credit reporting agencies after 90 days to verify that they have reported this release. Copies of your credit reports may obtained by calling Equifax at 1-800-685-1111; Experian at 1-888-397-3742 and Trans Union at 1-800-916-8800

I received a equifax credit report in June and the lien (that was once removed) was now added back to my credit report, but updated to show it was released 4/2005.

According to the posts I read, Equifax doesn't insert released tax liens, but mine is showing it. Can I write a letter to Experian and Equifax requesting that they remove it? And if so, can someone tell me what I should say in the letter so I don't screw it up?

[otama]

Equifax and Experian will delete the references to the liens that have been paid. I think that is only the case with tax liens. At least this has been the case with the ones I have seen (mine included). There are no guaranties in the world, but it is worth a try. I know about 5 other people who paid tax liens who have said that Equifax and Experian delete the reporting once they confirm paid.

Well, it's now being reported as paid and released on Experian and TransUnion; Equifax never had it listed. Is there anything that I can do to see if Experian will delete this. I know that TransUnion will not.

[jcolon68]

Equifax and Experian usually will delete an item that has been paid like this. TransUnion will not. I have not found a way to get it off my TransUnion. If it appears on your other two, write them and ask that it be removed as it is paid. When a lien is paid, the holder of the lien releases it and files a satisfaction with the court. On that sheet is the release date and it should be noted that way. Check your state to see if you have a website listing real estate records. If so, you might be able to pull up the release online. If not, go to courthouse and request a copy. It might cost you a buck or two, but it will be worth it.

I got my Paid Tax Lien removed super fast from TransUnion, I disputed it online as "not mine", Experian came back Verified, so I will send a letter requestion form of verification, addresses ..etc.... In my case EXP has been the hardest of the 3 to get things removed from..

[otama]

I would like to dispute it online through TransUnion, but it keeps telling me that my information is incorrect. I can log into and pull my a daily credit report, but I am unable to dispute any information.

How long did you wait until you disputed it with TU once it was released?

When I call the customer service number, I get the same person from India, "Lisa", who tells me that they do not have access to their site, let alone the Internet, and if I am wanting a file number, I have to purchase a new copy of my credit report. I told her that's kinda crappy that I have to purchase a new one seeing how I just bought one from them online last week. Needless to say, she and I went back and forth for about 30 min yesterday, and after speaking with a "supervisor", "Joyce", I finally gave up and said screw it.