DMP, Overdraft & Joint Account - help pls

giddykipper · 4 April 2007 at 8:40PM

Hi all

I've recently entered into a DMP with payplan who have been great. I've entered into it in my name only as all the credit was mine and me and hubby are splitting up.

However, we have a joint account with the RBS which is overdrawn by £1000 ....... the bank have now written to hubby to say they're withdrawing the overdraft and asked him to pay up within 28 days and make sure that the account then stays in credit at all times in the future.

I know I should have done this ages ago but I just completely forgot - is there any way that I can take his name off the account at this stage and just have it in my name only? He can't afford to pay £1000 in the next 28 days and tbh - he's still helping me out with payments and things so it wouldn't be fair of me to ask ..... especially as we only got a joint account so that we could pay the wedding cheques made out to both of us into the bank!! It was my spending that caused the overdraft.

See what I'm thinking is, I have a personal loan and cc through RBS as well and if they keep charging me interest and adding charges (which they currently are doing) then even if hubby can scrape the £1000 together to pay off the overdraft - their charges and interest will keep pushing it back over and he'll end up paying for it because i'm on a dmp - which doesn't seem fair at all.

OR maybe if we could scrape the money together and pay off the £1000, would I be able to have his name taken off the joint account then so that they only refer to me in future?

If anyone can help or offer some advice I'd really appreciate it ..... obviously I'll speak to payplan tomorrow but I just wondered if anyone had been in a similar position - might save me having yet another sleepless night!

Thanks very much

Jo x

Snaggles · 4 April 2007 at 11:04PM

I'm not sure if you can have your name taken off a joint account - I had a feeling that it can only be done if one party has passed away. Although maybe it depends which bank you are with.

I don't know the answer to your question, sorry

but I'm bumping your thread to see if anyone else knows!

Scottishmummy · 4 April 2007 at 11:18PM

I think you would have to try and pay the £1000 then close the account. I don't think you can change the names as I wanted to change a current account I had into a joint but couldn't. The fact you are splitting up is a good enough reason to get them to close it.
If anyone knows any different then this will help bump the post up the page and hopefully you'll get more answers soon.

Snaggles · 4 April 2007 at 11:27PM

Funnily enough, with my bank you definitely can change an account from sole to joint (we did it with one of our accounts last year), but to change from joint to sole, I would have to close the account and open a new one in sole name. Not sure exactly why.

I think if the account is in a debit position though, they might be more wary of agreeing a sole account, because at the moment, they can chase either or both of you for the money, whereas if it was to become a sole account, they would only be able to hold one of you liable.

giddykipper · 5 April 2007 at 7:25AM

There is only the current account in joint names so do we think that if we could somehow scrape together the £1000 then I could change it back to just my sole account?

I would close the account altogether and just let the payments via Payplan pay for the loan and cc accounts ....... but ...... for some reason the loan payment has to be paid into the current account first then taken from there and paid to the loan account - it can't be paid to the loan accound direct.

So really unless we can take his name off - they have us over a barrell ....... any charges or interest from the cc and loan account that they apply will continuously put the current account overdrawn and they'll keep chasing hubby to keep it in credit!!

Hhhhhmmm actually - can they do that because any charges/interest on the cc and loan will be as a direct result of MY credit, not his.

Oh God this is sooo complicated ........ everything was settling down nicely and for once I was actually seeing a bit of light at the end of the tunnel!

I'm SO annoyed (that word doesn't even start to cover how I'm feeling really) with myself for not thinking ahead and getting him taken off the account before I even set up the dmp ...... but at the time my head was well and truly in a mess!

What a nightmare!

Thanks for all your replies so far, really appreciate them.

Jo

Eager_Elephant · 5 April 2007 at 7:34AM

Hi Jo,

I don't think you need to worry too much.

As you are now with Payplan the likelihood is that in the next few months all your RBS accounts will be passed to either their own debt collection team or to a debt collection agency.

Although the loan payments have to go through a current account, you will find that Payplan will be able to pay it directly into your loan account.

I suggest that you cancel all DD's and/or SO's if you haven't done and let them do their worst - after all in a few months when things have settled down you will be able to claim your bank charges back.

If the overdraft is not paid then it becomes an unauthorised overdraft which will attract more charges but again as above it will be passed onto a debt collection team or agency.

Payplan deal with this all the time so it won't faze them.

Good Luck

EE

giddykipper · 5 April 2007 at 9:31AM

Well basically Payplan say they can't really do anything and that I have to speak to the bank direct.

Sooo I rang them and spoke to a very nice young man who I'm really sure 'got' what I was trying to say ....... anyhow, according to him, all we need to do is each write in to say that we want my husbands name taking off the account .... and Bob's yer uncle!!

I suspect it really isn't going to be that easy .... but we'll do the letters and take it from there, hopefully if we can scrape the money together then we'll be able to take his name off the account.

They definitely wont let me close the account yet though as they cannot accept direct payment for the loan - it has to be paid into the account first THEN passed on to the loan account!

Nightmare!

DMP, Overdraft & Joint Account - help pls

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