In detail
Public records in the context of consumer credit reporting are items of information that originate from government sources, such as court filings or liens recorded with a government agency. These items become part of a consumer's credit report when a credit reporting company obtains them from public sources. Common types of public records that may appear include bankruptcies, civil judgments, and tax liens. The Fair Credit Reporting Act (FCRA) governs how credit reporting companies handle public record information, including requirements for accuracy and dispute resolution. Under the FCRA, public record items are subject to specific reporting time limits. For example, bankruptcies generally may be reported for up to ten years from the date of filing, while most other adverse public record information, such as civil judgments and paid tax liens, may be reported for seven years from the date of the event. Unpaid tax liens may be reported for a longer period, depending on the jurisdiction and the applicable statute of limitations. When a public record appears on a credit report, it is typically listed in a dedicated section, often labeled as "Public Records" or "Public Information." Each entry generally includes the type of record, the filing date, the court or agency involved, and the status or disposition. Credit reporting companies are required to maintain reasonable procedures to ensure that public record information is accurate and current. Consumers have the right under the FCRA to dispute inaccurate or incomplete public record information with the credit reporting company. If a dispute cannot be resolved, the consumer may add a statement of dispute to their credit file. It is important to note that public records are separate from account information reported by lenders, and they can affect a consumer's creditworthiness as evaluated by potential creditors. However, the presence of a public record does not automatically determine a credit decision, as lenders consider multiple factors.