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OPEN YOUR HEART - NOT YOUR FINANCES
Equifax offers advice to consumers on the pitfalls of joint agreements
when a relationship fails

Falling in love and meeting Mr or Ms Right is a wonderful experience. But Equifax, a leading credit reference agency, is warning about the dangers of relationship ‘transmitted’ debt when partners go their separate ways and offers advice on how to avoid the pitfalls.

“Few people think about the financial implications when a relationship breaks down, especially in terms of their credit” said Neil Munroe, External Affairs Director, Equifax Plc. “Often, however, an individual coming out of a relationship may discover that they are liable for a credit agreement that their partner has taken out. This can happen when the individual has agreed to be a guarantor on their partner’s personal loan - only to subsequently discover that they have actually signed the relevant document as a co-borrower, leaving them liable for the debt.”

“Coming out of a relationship is stressful enough, without finding out that the ex-partner has ‘passed on’ their debts,” added Munroe. Not only do they have the anxiety of trying to keep up with payments, but individuals will also be concerned about the effect it is having on their credit status. It is, therefore, essential that individuals apply for a copy of their credit file to review their financial commitments and see what lenders will use to assess any applications for credit – especially at the end of a relationship. They can do this instantly, online by going to www.myequifax.co.uk.

There are a number of precautions individuals can take to safeguard their financial status when they are in a relationship. Equifax also has some advice to offer for individuals who may find themselves laden with their ex-partner’s debt and need to build a new future.

Consumers can request a copy of their credit file online instantly at www.myequifax.co.uk to learn about the information held on them.

EQUIFAX’S TOP TIPS ON AVOIDING RELATIONSHIP TRANSMITTED DEBT
  • If a partner asks you to sign a credit agreement as a guarantor, make sure you know exactly what you are signing
  • Read the agreement carefully so that you know what it entails
  • If the relationship does end, apply for a copy of your credit file
  • Make sure you close all joint accounts once you have split up
  • If there is an agreement which was taken out in your partner’s name alone and could affect your credit status, apply for a Notice of Correction from Equifax, which allows you to write a 200 word statement to explain your circumstances to lenders
  • Apply for a Notice of Disassociation from Equifax if you can prove you no longer have any financial connections with your partner

 

Equifax is the first credit reference agency to offer instant, online access to credit files in real-time – www.myequifax.co.uk.


ENDS
October 2003