Protecting credit from soon-to-be-ex-spouse

Moonmoney

Hi Can anyone confirm that my thinking is on the right track for the following situation?

A member of my family is in the middle of a messy/nasty divorce. They are seriously concerned that the soon-to-be ex spouse may well try to take out new financial loans using both of their names.

The reason for concern is twofold: After the separation had happened and divorce had been started, ex still successfully applied for joint loans - thankfully these were cancelled. The 2nd concern is if another joint (fraudulent) loan was taken out and secured on the house. The house is still mortgaged in both names.

So .... what I was thinking of getting my family member to do is:

1. get their own £2 credit report from Experian (and possibly also go to the other 2 credit report companies at the same time?) This is to check exactly what is listed on their report right now.

2. send written letter to all 3 credit report companies explaining divorce situation, stating not to be linked with ex in future and that this letter is included on their credit file for any future enquirers to see.

3. Put an entry onto the CIFAS register that no credit applications should be made until further checks with family member have been made.

So is my research and thinking along the right lines? Do we need to contact CIFAS as well as the credit bureaus? Will the family member be a little bit more protected if they do the steps above?

Thank you for any help/advice Mm

Tixy

1) good idea. I would go for all 3 agency files.

2) You could put a notice of correction on their credit files but I doubt this would be necessary if you do 3.

3) I think that is sensible to apply for CIFAS protective registration in the situation and worth the small fee - which will in effect do what you describe.

Any joint application should fail anyway, but I assume ex forged the signature on the previous one?
Certainly I can't imagine they'd be successful in taking out a secured loan without the lender wanting more than just a signature from both parties (they would want to identity check both).

If they no longer live together and if the mortgage is the only account in joint names now then I would also suggest they file for a notice of disassociation with each agency (they will consider it when a joint mortgage is the only remaining link).

tinkerbell28

They will be linked to each other all the time there is an outstanding joint mortgage.

A CIFAS protective registration would be a good place to start.

Moonmoney

Thanks Tixy

It's been a number of years since I took a loan out - do lenders actually want to see all loan applicants in person or is it enough that one of the applicants could turn up with, for example, the other one's passport, national insurance number etc?

Moonmoney

Another thought in my head is whether doing any of these steps will upset the divorce process underway with the solicitor.

Will they or are we OK to start these off now without anything else being adversely affected?

Thank you again

Tixy

I can't think that any of those things should impact on the divorce.

In terms of applying for loans - if its for a secured loan then I don't think they'd get away with taking along id for the other person.

I guess there is always a danger with unsecured loans of applying online or applying with a lender used previously where something could slip through (it shouldn't but far easier to protect yourself using CIFAS registration than to fight against a loan after it has happened).

Moonmoney

Still learning fast but on completing the CIFAS form, something on another thread made me wonder how the CIFAS marker affects the other person in the (soon ex) relationship.

They are still married (awaiting divorce) and are still financially associated.

When my family member does the CIFAS form, how or will the other person be affected by this?

Will a marker also be put onto their half of their credit record? Will they be notified that this has happened? Will they be notified that person A has applied for the CIFAS marker for themselves?

As ever, thanks again