Divorce Can Ruin Your Credit Rating
Divorce can be a tortuous affair, at best. However, it appears that it might just have got a whole lot worse.
Recent research suggests that more and more ex spouses are seeking retribution by taking out joint credit cards, car hire and equipment leasing after divorce. By using the name of their ex spouse they can then indulge in reckless spending or cause untold damage to equipment that has been leased. It’s kind of like the financial equivalent of taking a pair scissors to a wardrobe of clothes!
Often, only the true extent of the damage can be ascertained from your credit reference - obtained from the likes of Transunion, Experian and Equifax.
Fortunately, the law can help expunge marks on your credit score.
David Rubinger, spokesman for Equifax says “if your ex-spouse used your name and Social Security number to take out credit without your knowledge, that person has stolen your identity.” It doesn’t matter to a credit agency whether you have been the victim of credit fraud by a criminal, friend or ex spouse.
The key to reclaiming your credit history back is to report the situation immediately to the credit company and the credit referencing agencies. They will require you to fill in a full report to the police on the matter.
However, if you have a joint account that was created with your ex spouse before the divorce, then the situation is a little different
Experian spokesman Rod Griffin says. “If you have a joint account, you’re considered fully responsible for that debt,” It is still possible to file a dispute with reporting agencies who have 30 days to investigate the situation.
The common sense approach to this is to shut all joint accounts down when you divorce and be vigilant for a vengeful spouse looking to smear your credit record!
(Via USnews)
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