Discover Platinum.. Decrease Limit?

[KIPPIE12]

I have seen Discover, as of late, CLD an account.  A friend of mine's ex wife defaulted on a mortgage that he was on, and they slashed his limit by 40% of the original limit.  Even though his scores were in the mid 700's, and they have been divorced for 17 years, it hurt him as well.  It wasn't anything he did, but hurt his FICO scores.  Discover was about to give an increase at 6 months, account reviewed his report, and saw the mortgage in default process.  Chop, chop, there went his limit.............Citi followed up about a year later, and chopped his line by 60%.  The banks didn't want to hear this, or put them back to the original lines.  So, he's fighting it through the divorce decree, attached notes to the bureaus, and working with an attorney to get his credit back.  There was a clause in the divorce decree that she was responsible for the payments, even though his name was on the loan.  We'll see what happens.

[haulingthescoreup]

---

KIPPIE12 wrote:

...  There was a clause in the divorce decree that she was responsible for the payments, even though his name was on the loan.  We'll see what happens.

---

Unfortunately, this doesn't mean diddly in the real world. If your name is still on the mortgage, you're on the hook, decree or no decree. (I'm speaking of everyone here, not just your friend.)

I'm amazed the mortgage holder didn't come after him!

It's possible that the two CCC's will be willing to reverse their AA, since they weren't actually hurt by the default. They were just reacting to the credit report.

But no matter how well someone gets along with the ex, ALL joint accounts, including the mortgage, need to be closed, and the mortgage re-financed if one person is keeping the house. That's just one of the financial disasters that come along with most divorces.