We have recently experienced a surge in claims related to unauthorized use of credit lines including forgeries. It seems that when the economy turned suddenly in 2008 some folks decided to make their own credit by using that of their spouse.
Yes, this is illegal and, yes, it may mean that you are not liable on the debt taken in your name. But the law often holds that we have a duty to investigate things and to take action promptly when we have been wronged.
If there is even a small chance that your spouse may have opened or increased a credit line (whether an open mortgage, a credit card or some other personal line of credit) without your knowledge or permission, the first step you must take is to order a credit report on yourself. Review it carefully to see whether (a) there are creditors on the report you do not know as yours or (b) whether credit limits you originally signed for have been increased without our permission. If you are the victim of this kind of activity contact an attorney. You need to completely document every step you take along the way. Don’t assume if you are the victim of such fraud that the lender is your friend. Many couples purposely try to set up these kinds of schemes and your banker does not expect that you and your spouse are adverse to each other. Bear in mind as well that the lender is often left holding the bag if you are successful in showing that your spouse is the person who “borrowed” your identity to run up some secret bills.
Many clients ask whether they should get a credit check on their spouse. This is a touchy subject because you don’t have an automatic right to know your spouse’s credit information. If you want that information, make certain that your spouse confirms that you have permission in a writing that can be presented when the check is done. You might have a “friend” who is in the business who can assist you in getting a report on someone else but be aware that both you and your friend could be liable for invading the privacy of your spouse if you perform a credit check without the debtors express permission.