A recent report indicated that some consumers are setting up joint savings and checking accounts with their elderly parents to protect their loved ones from financial exploitation and to assist them with their bills.
While maintaining joint bank accounts may allow adult-aged children to more effectively look out for suspicious behavior, those accounts can pose problems for both parties if any of the parties have not maintained their credit in excellent order, The New York Times reports.br />
For example, consumers who share a savings account with a relative, but then default on an independently owned credit card, may be putting their loved ones at risk. Creditors may go after the funds in the joint account in order to recoup the amount the individual owes on his or her credit card, leaving one party with unfair marks on their credit reports.
In some cases, a mistake on a credit report may suggest that an account has defaulted, when in fact, it has been paid off in full. This type of errant item may affect both individuals if the creditor tries to go after money in a co-signed account.
Consumers who face this dilemma may benefit from speaking with a credit lawyer to help investigate and dispute the blemish. By working with a credit repair attorney, individuals may be able to wipe their credit report of the error, providing relief to both parties.