Can accounts be deleted based on a divorce decree?
Scenario: Request is to add a remark to a trade line that the borrower’s ex-spouse is responsible for an account due to a decree ordered by a divorce court. The account is listed on a court stamped copy of the borrower’s divorce decree.
Our supplement remark options include only ‘Account Included in Divorce Decree’ but the client wants a remark that explains that the consumer on our report is not responsible. Can we add a statement other than the pre-scripted remark because we have documents to prove awarded to an ex spouse by a divorce court judge?
No.
A divorce decree is a legal order between divorcing parties and is not a contract between the consumer and the creditor. Typically, as far as the creditor is concerned, all parties originally responsible for the debt remain responsible. The creditor still has the right to pursue payment from any and all parties who accepted contractual liability at the time the account was opened.
Any remaining balance, payment status, payment history whether positive or negative, can still report on files of any consumer who is contractually responsible regardless of a divorce court order.
What we can do:
If creditor names are not listed on the divorce decree but property (e.g. a home or automobile) is listed, we can verify with the creditor the collateral attached to an account and add a supplement remark.
If the ex spouse re-financed the loan and the new loan is in the ex-spouses’ name only we can verify and update the previous loan as paid through refinance.
If the creditor agreed to remove the consumer as a liable party and verifies that the consumer is no longer responsible for the debt we can update to ‘terminated’ in applicant’s name (this is not common).
The standard remark Account Included in Divorce Decree (include the date of the decree) can be added if a valid copy of the decree is provided and clearly lists the trade line in question. We do not extend those remarks to indicate who is or is not responsible for payment.