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Legal Matters: Be aware of who you share your name with

If you have a fairly common surname coupled with a popular first name, there could be someone out there who is a ‘bad apple’ and hasn’t paid their debts.

Mistaken identity can cause headaches when trying to secure a loan.

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Mistaken identity can cause headaches when trying to secure a loan.

Q: Although our mortgage is paid off, we decided to  take out a secured line of credit on the property to give us some funds for long overdue renovations.  

Our banker processed the application and said there would be no problem with the small amount we were borrowing compared to our home equity.  

We decided on a well-referenced  contractor who was ready to start as soon as we could provide the down payment.  
We went back to our banker and she said there was a glitch because I had an execution registered against me.  

I was shocked and denied it,  but until we have this clarified the renovations are on hold.  What should we do?


A: When financial institutions propose to lend money to their customers without the use of a lawyer,  they will do an execution search on your name to see if you have a judgement registered against you with the sheriff.
 
This would obviously put any potential loan in jeopardy if it were found that you had been successfully sued and not paid your debt.
 
The problem is that many people have the same names.
 
If you have a fairly common surname coupled with a popular first name, there could be someone out there who is a ‘bad apple’ and hasn’t paid their debts.

In this case, you will have to prove you are not the same person; usually by swearing a declaration to that effect, but sometimes you’ll need to go so far as to provide details such as your date of birth and other pertinent personal information.
 
This can even go so far as to affect your credit rating.

You should always be aware of other people out there who have the same name who can affect your creditworthiness.

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