GET FINANCIALLY PROTECTED AGAINST YOUR EX
Equifax warns of the financial dangers when a relationship fails
London 27th April 2007 – When Mr or Mrs Right turns out to be Mr or Mrs oh-so-Wrong, it’s not only your heart that could be broken. Reports claim that Sir Paul McCartney’s divorce from Heather Mills could cost him close to £100million and the parting of Chris and Ingrid Tarrant is attracting headlines over the size of the settlement. But Equifax, the leading online credit information provider, is warning that it’s not only the rich and famous that could end up paying up if a relationship ends.
“It’s sad but true, that often you need to be just as wary of your nearest and dearest, as you would be of a total stranger” said Neil Munroe, External Affairs Director, Equifax. “In a recent survey* conducted amongst Equifax customers we discovered that when it comes to money, partners can’t be trusted to tell the truth. 23% of respondents admitted to having lied about money to their partner, whether it was a little white lie about their spending, or worse, covering up spiralling debts.
“One respondent revealed he’d hidden a £50,000 debt – imagine discovering you were liable for these sort of debts incurred by your former partner. This could happen, for instance if an individual has agreed to be a guarantor on their partner’s loan, only to discover that they have actually signed as co-borrower.”
An individual will only be liable for a partner’s debt if they carry joint liability, such as a joint tenancy or mortgage, a joint credit agreement, joint bank account, council tax for co-habiting couples, or water charges on the property they have been occupying. The Equifax survey revealed that 50% of consumers have joint agreements such as these. If joint liability applies, the creditor will try to get full payment from any, or all, of the people responsible. If you have the most assets, you’ll be their first port of call!
“Couples need to consider precautions during and after a relationship”, Neil Munroe continues. “Both partners must be totally sure they are comfortable to enter a joint agreement and confident of their partner’s ability to be financially responsible, which will probably require a few uncomfortably honest conversations. However, it is always wise to be over-cautious.”
Equifax’s survey also revealed that truth and honesty go beyond just joint credit agreements. Unfortunately 11%** of ID Frauds are committed by someone known to the victim. It’s vital, therefore, that individuals also keep all PIN numbers and personal details secure. This isn’t always easy if you are living with someone, so the best advice is to monitor your credit report, which will list all applications made in your name, be that by yourself, or a fraudster.
You can obtain a copy of your Equifax Credit Report for £11.95 instantly online from www.equifax.co.uk.
Equifax Top Tips Protecting Yourself from Paying off your Ex’s Debts
During a relationship:
- If a partner asks you to sign a credit agreement as a guarantor, make sure you know exactly what you are signing. Consider whether you should have confidence in you partner’s ability to re-pay the loan, if the bank doesn’t.
- Make sure you fully understand anything you are asked to sign, and always keep your own copies of documents.
- If you have a joint account, consider asking for two signatures on cheques over a certain amount.
- As 1 in 4 ID fraud cases are perpetrated by someone known to the victim, always keep your personal details private.
- Ensure you know who is responsible for paying which bill and where the cash is coming from, so there are no disagreements further down the line.
- Keep receipts for anything you personally pay for. Disputes may arise years later, by which time ownership may be hard to prove.
- Regularly apply for a copy of your credit report (www.equifax.co.uk) to ensure no one is opening accounts in your name.
When a relationship ends:
- 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 immediatel 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. Apply for a Notice of Correction 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.
*A survey was conducted with over 500 Equifax customers in March 2007
**A survey was conducted with 1,200 Equifax customers in September 2006
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