Press Release

A BROKEN HEART MAY NOT BE ALL YOU'RE LEFT WITH AFTER A RELATIONSHIP BREAK-UP

Equifax says it's essential to sort out any joint finances so that an ex-partner's bad debts don't hurt your own credit rating

London, November 28th 2009 - As highlighted in recent media reports, it may not be just your heart that's broken when Mr or Miss Right turns out to be Mr or Miss oh-so-Wrong. Bad debts of an ex could haunt you for years to come - and make it really difficult to get new credit - if you haven't sorted out any joint finances that you may have had while you were together.

Leading instant online credit information provider, Equifax, is warning that it's vital to sort out any joint finances at the end of a relationship - otherwise there could be a risk of what has been called 'sexually transmitted debt', with one half of the partnership finding their credit rating affected if the other gets into debt. And that includes old joint credit cards - even if you're not using them any more.

"An individual will only be liable for a partner's debt if they carry joint liability, such as a joint mortgage, a joint credit agreement, credit card or bank account" confirmed Neil Munroe, External Affairs Director, Equifax. "But whilst most couples will be fully aware of their shared financial liabilities, what they might not realise is that if those joint finances aren't settled in full and closed after the relationship is over, then their credit rating could be affected if the other half gets into debt in the future.

"In the majority of cases the information on an individual's credit file relates only to them", continued Neil Munroe. "But if you have a joint financial agreement with a partner then their credit information will be linked to yours for the whole time that joint agreement remains, because it is deemed that your own financial status could be affected by the other person's financial behaviour. So when a relationship is over it's absolutely vital that you get any joint finances settled and closed. And don't forget joint credit card accounts that you may not be using - as long as they are still 'live' that will create a link to your ex too!

"In the current climate, with lenders being much more selective about who they extend new credit to, it's essential that your credit file is up to date - and no information on it can affect your credit rating. So if you want to start afresh after a relationship is over, make sure all joint agreements are dealt with and then your credit rating will only be down to your financial behaviour - and not anyone elses"

The end of a relationship is also a good time to obtain a copy of your credit report to gain an overview of your financial commitments and those you have with your ex-partner. The Equifax Credit Report, with the facility to access credit information for the first 30 days free, is the ideal solution. Designed to help individuals understand their credit file and see what lenders see to assess new credit applications, the Equifax Credit Report also includes expert tips and advice to help consumers take the right steps to manage their finances and navigate through life's challenges.

If the customer does not cancel before the end of the 30 Day Free Trial, the service will continue at £6.99 per month, giving them unlimited online access to their credit information and weekly alerts on any changes to their credit file. It also includes an online dispute facility to help them correct any errors on their credit file simply and quickly.

Equifax Top Tips - Protecting Yourself from Paying off your Ex's Debts

Apply for a copy of your credit report so that you are aware of your financial status and can tackle any joint agreements.
Clear all joint bills immediately and then inform the supplier or lender that you wish to amend the account details/terminate your contract with them.
Close all joint accounts immediately.
If you have applied for credit together links to your partner's credit report will be shown on your report as 'associations'. These will remain unless you inform the Credit Reference Agency. You can apply for the associations to be removed (what is known as a disassociation request) from Equifax once you can prove that you no longer have any financial connections with you partner.
If your former partner has had access to potentially sensitive information change your PIN numbers and monitor your bank statements and credit report.

Equifax Top Tips - Improving Credit Ratings & Good Credit Management

Registering to vote will improve your rating. This is an essential way for lenders to verify an applicant's identity and prevent ID fraud
Close old credit card accounts - even if they show a zero balance lenders will look at the potential credit available when assessing applications
Aim to pay off more than the minimum each month - again because lenders look at the potential debt an individual has to assess their credit worthiness
Try to avoid carrying a balance that is more than 30% of your credit limit
The financial activities of family members and other people living at the same address will not have an impact on a person's credit file unless there is a financial link, for example if they have a joint mortgage or loan agreement. If the individual no longer wants to be associated with a person they have had a financial link with, for example after a break up, they can apply for a notice of disassociation to be added to their credit file. This can only be added if the individual can prove there is no longer a financial link.
If you have paid any County Court Judgments, make sure the settlement is recorded on your credit file. If not contact the court to get confirmation details and inform the credit reference agencies
Get a copy of your credit file before you start applying for new loans - then you will see the information a lender sees when they assess your application
If you have been refused credit, obtain a copy of your credit report, but DO NOT carry on applying elsewhere

ENDS

For further press information please contact: Elinor Puzey, Louise Fowler, Cecile Stearn or Wendy Harrison at HSL on 020 8977 9132 / Fax: 020 8977 5200 or Email: elinor@harrisonsadler.com