Can A Creditor Close A Joint Account Because Of A Divorce?

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Can A Creditor Close A Joint Account Because Of A Divorce?

By law, a creditor cannot close a joint account because of a change in marital status, but can do so at the request of either spouse. A creditor, however, does not have to change joint accounts to individual accounts. The creditor can require the debtor to reapply for credit on an individual basis and then, based on their new application, extend or deny the credit. In the case of a mortgage or home equity loan, a lender is likely to require refinancing to remove a spouse from the obligation.

Other Nevada Collections-Creditors Rights FAQs

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A: A debt collector is any person or agency, other than the creditor, who regularly collects debts owed to others. Under a 1986 amendment to the Fair Debt Collection … More
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Q: What Can A Debtor Do If They Believe A Creditor Violated The Law?
A: The debtor has the right to sue a creditor in a state or federal court within one year from the date the debtor believes the law was violated. If debtor wins, they may … More