The credit system looks at several factors when formulating credit scores; unfortunately, fairness is not one of them
Salt Lake City, UT (PRWEB) August 23, 2009
Lexington Law, the nation's leading provider of consumer credit correction services, reports that a significant number of clients using their services have fallen into a financial crisis following a divorce. Having assisted hundreds of thousands of clients with their credit repair efforts, Lexington Law has seen time and time again the devastating effects a divorce can have on a person's credit reports.
When a couple divorces, the emotional turmoil combined with the added stress of extra expenses, dual households, child support, the division of debts and assets, and possibly the separation of a spouse from his or her children can leave a person unable to manage the resulting chaos. Then, even with a decree of divorce entered by a court, creditors generally hold both parties responsible for all debts regardless of whether or not a judge has ruled that only one ex-spouse is responsible. As a result, even ex-spouses who diligently pay their bills on time may see their credit score dramatically decrease when the other ex-spouse defaults on financial obligations, because the creditor will report the delinquency on both spouses' credit reports.
"The credit system looks at several factors when formulating credit scores; unfortunately, fairness is not one of them," said John Heath, Directing Attorney for Lexington Law. "Even the most amicable of divorces can lead to missed payments and dings on both ex-spouses' credit reports. Worse, judgments, foreclosures, and bankruptcies that result from one ex-spouse's mistakes can destroy the credit ratings of both parties."
It's situations like these that negatively impact an individual's credit scores through no fault of their own and reveal the shortcomings of today's consumer credit system. For instance, a person in this situation could be denied a loan or be denied a job based solely on a credit score that is not an accurate representation of the person's credit risk. To assist these people, Lexington Law helps consumers dispute the questionable negative items in their credit reports that are giving lenders, potential employers, insurance providers, and anyone else who looks at their credit reports, an incomplete or inaccurate understanding of their credit history.
"I paid my bills, had great credit and then got a divorce… five years (later) I'm still dealing with the consequences," reports Natalie, a client of Lexington Law, "and then I found Lexington Law and am able to get back on my feet… My score has gone up almost 200 points since I've started this program and I have referred many, many friends. Anyone with credit issues can sign up with Lexington and make a difference in their credit. I look at it as a rehab facility for people who had issues in the past but want to fix their credit and their lives. A better future is coming."
About Lexington Law
Lexington Law, a consumer advocacy law firm, is the nation's leading provider of credit correction services. These services have been refined through 18 years of experience representing more than ½ million clients as they've worked to resolve credit issues. Through participation in services which address issues with creditors as well as the credit bureaus directly, our average clients see 84% of the damaging information removed from their credit reports within 1 year. (Individual results may vary). For details about Lexington Law's services, attorneys, or statistics, visit: lexingtonlaw.com