Dealing with incorrect tax liens..

[merkurfan]

several years ago I failed to file my state returns on time, due to a move I did not get the info fast enough and liens where filed. Once brought to my attention I filled the required returns, they where accepted and the amount I owed was reduced by 100K.. Since then I have been fighting with the CRA and the state trying to get the information corrected on my report. I have one total lien but all 3 CRA show something different, 2-3 liens and none with the correct amount.

How do I go about handling this? Can I send them a DV? I have a letter from the state on state letterhead that shows the amount I owe. I have sent this to all 3 CRA and one did take "some" action and adjusted the amount on 1 lien but failed to delete the 2 incorrect TLs. Sadly, I have lost the green cards for those letters so I assume I will have to start all over. The state thus far has been un-responsive except to say "Pay us and will mark them paid".

[gypsie]

DV is for CAs, not the State.

I had a similar situation and here's how I handled it.

I had a paid tax lien that EQ continued to report as unpaid for months after providing them a copy of the release from the State Tax Commision- showing it as paid.

I disputed 3 times and each time EQ reported as verified. So, I threatened to sue EQ for violation of FCRA Section 623, and wilful injury after being provided proof. EQ removed the tax lien entirely within a couple of days.

[nascar]

Once brought to my attention I filled the required returns ... the amount I owed was reduced by 100K.

Reduced by $100,000.00 !?!? Get yourself an accountant and a lawyer.

[Kat99]

Now I am really confused. I have been reading everything posted on tax liens and there have been several posts the past couple of days. Everything I have read states that the CRAs will not remove any public records (tax liens) as they claim they dont report them in the beginning. I also read that the CRAs send cronys to the search public records and then add the info onto the credit report. Soooooo, I want to make sure I understand. I have a $111 tax lien that I was never aware of, online disputed last year and came back verified. Once verified, the status, etc., was updated to show last yrs date as a released date (its from 1995) and the status went from unpaid to "paid" (no credit score difference when this happened). Mind you that I never paid anything. I dont even know where or how to attack this as there are so many different and conflicting posts regarding Public Records. Can someone pls clarify if the CRAs can or cannot remove Public Records? Also, since I nvr paid anything and they changed my report to indicate I did (I have before and afters of my actual CRs), is that grounds for dispute/delete or would I be waking up the beast again. Never got served anything at any time either. So freakin confusing

[thomassl]

Why don't you just go down to the county courthouse and look at the record yourself instead of ? Any questions you have, they could answer for you there!

[Kat99]

Thanx and I guess I am going to have to take the day off from work and finally go down there myself.

[gypsie]

So freakin confusing

What's confusing?

The FCRA states: § 602. Congressional findings and statement of purpose [15 U.S.C. § 1681]

(a) Accuracy and fairness of credit reporting.

That means just that- your reports must be accurate.

In my case, the TL ( a state tax lien ) listed with EQ was NOT accurate

Under FCRA Sec 623.

(D) SUBMITTING A NOTICE OF DISPUTE- A consumer who seeks to dispute the accuracy of information shall provide a dispute notice directly to such person at the address specified by the person for such notices that--

(i) identifies the specific information that is being disputed;

(ii) explains the basis for the dispute; and

(iii) includes all supporting documentation required by the furnisher to substantiate the basis of the dispute.

( Duties of furnishers of information upon notice of dispute-

(D) if the investigation finds that the information is incomplete or inaccurate, report those results to all other consumer reporting agencies to which the person furnished the information and that compile and maintain files on consumers on a nationwide basis; and

(E) if an item of information disputed by a consumer is found to be inaccurate or incomplete or cannot be verified after any reinvestigation under paragraph

(1), for purposes of reporting to a consumer reporting agency only, as appropriate, based on the results of the reinvestigation promptly--

(i) modify that item of information;

(ii) delete that item of information; or

(iii) permanently block the reporting of that item of information.

SEE (ii)- it says DELETE that item.

In my case, I never expected them to delete- I just wanted it corrected to "paid"- but fortunately for me- they deleted.

So, calm down, and no need to be confused.

[Kat99]

thnx for the info. My concern is that they show it as Paid and Released as of 2006 (I nvr paid anything) and if I re-open a dispute for the inaccuracies, can it once again reset the reporting timeframe like last time I disputed and/or can they then take away the Paid and Released status to show unpaid? If that happens, wont I be in worse shape as I am now and would it effect my fico? Thnx for helping me with this as there are so many conflicting posts on public records

[gypsie]

There are a couple of things to consider here.

Yes, you probably will be "waking the beast" if you dispute.

However, when it comes to the government, IMO- you need to be as honest as possible. The government can be ugly when you owe them.

Yes, the TL may fall off without you ever paying a dime, but one day it may resurface. The thing about tax liens is:

Tax liens remain on your credit reports for 7 years from date satisfied not filed- Period. If they remain unpaid they can stay longer- depending on the state... So, you're worrying about "reseting" anything is irrelevant- because you never actually paid anything. But, yes- they may notice that you never paid and change the status to "unpaid"- which would definately cause the TL to remain longer- and for some states I believe it can be indefinately until it is paid.

However- it depends upon which state's law the lien is from as to how long it remains "collectable".

So, not only do you need to consider your credit- but if it's collectable as well.

[merkurfan]

Reduced by $100,000.00 !?!? Get yourself an accountant and a lawyer.

Now that the debit is a much more managable 4 digit number a lawyer is a waste of money. Most have wanted as much, or near as much as I technically owe the state as a retainer. If I had that kind of money I would just settle the lein. While I might be able to settle for less with the assitance of a lawyer it would cost more in the end.

[hopen4800]

Kat99

Sometimes the tax collector will take the funds to pay your lien from successive years refunds.

[merkurfan]

Kat99

Sometimes the tax collector will take the funds to pay your lien from successive years refunds.

They have been doing that for a few years now. Does not bother me much. I do owe them the money. However their penalties (already to the max allowed) doubled the amount I owed them. And they will NOT budge on that amount at all.

[merkurfan]

I got in contact with the state to see if they would update the info with my county to reflect what I actually owe so the CRA's could correctly update it. I was told "no".. When I asked about payment arrangements they said "sure" tell us EVERYTHING and we'll think about it. Of course they want to know where I work, my bank accounts and the such so they can just levy that stuff.

Anyways my original issue, my credit is just about cleaned up, in 6 months the last of the nasty stuff will fall off (38K judgment on a defaulted lease from a business) How in the world do I get the correct tax lein info on my report? The state will give the correct amount owed but refuses to do anything other than send me a letter stating how much I owe (I said send it please). They said they don't report anything to the CRA's and that they get it from the county. The county of course pulls the original tax lein and says "yup, thats what he owes". I got experian to call the state and verify and that report is correct. The other two refuse to do anything. I also found there is one lein on my report that was not filed by the state against me, but someone else with the same name. I have disputed that as not mine in the past but it remains.

Is my next step to send one more dispute letter to the CRA with the new letter from the state and a demand to have the report corrected along with a warning I plan to sue if not corrected?

[gypsie]

Send the letter. If your reports are not corrected to an accurate status. Get tough and plan to sue them.

It's riduculous that when given the info they need to update your reports, they wilfully do not correct.

I would contact an attorney.

[merkurfan]

I can't really afford a lawyer, I don't need my credit perfect in the near future. I just thought I would nip this in the butt now before I do. I have a feeling if I sue they won't show up as I live 100 miles from the nearest town that they may have a lawyer in. (i'm out in cow/corn country) When I show up to court with the letter from the state, their refusal to re investigate letter and once I get it, their reply to the MOV letter I doubt they'd have much of a leg to stand on.

[MadinKS]

Unfortunately the CRA's are the real adversaries here. They have reps that, for a living, search the databases and public records for stuff to clutter their reports and screw us. The only way you will get it correct is when it's paid in full. After you file the satisfaction of judgment or tax lien release, and then dispute it again, then maybe it will be right. Sorry to be the bearer of bad news. I'm in the middle of that myself. I disputed a judgment that is showing on my wife and my CR's and hers deleted, mine didn't. So, do I say to the CRA, WTF??, my wife's is deleted but you verified mine. Rock and a hard spot.

[jkbowen1021]

I had a tax lien that was paid. It was showing that I still owed on the credit reports. I disputed it and it came back verified. I called the courts and they said that it was still outstanding. I went through my paperwork and find the release from the state. Called the courts back and they said that the state does not file those. It was MY responsbility to file it. The Courts do not send info to the CRA. The CRA pays people to go to the court house and look up info. I would call the courts and see what they have on file before going any further. You may have to file something with them and then dispute it with the CRA's. You may even want to see if your courts system has an online docket. You can go into there and it will tell you what is showing up online without even calling or taking a day off.

[Ahntara]

"...the release...the state does not file those...Courts do not send info to the CRA..."

You should also have the Release of Lien recorded at your local courthouse.

The hidden danger with legal items, like bankruptcies, tax liens, foreclosures and judgments, is that they may cloud title to real estate. They also have long lives. They can cause problems long after their disappearance from your CR.

[jkbowen1021]

"...the release...the state does not file those...Courts do not send info to the CRA..."

You should also have the Release of Lien recorded at your local courthouse.

The hidden danger with legal items, like bankruptcies, tax liens, foreclosures and judgments, is that they may cloud title to real estate. They also have long lives. They can cause problems long after their disappearance from your CR.

I filed mine yesterday, and disputed it today.