how to close a joint account if your partner keeps spending?

vcba

Hi

I know someone who needs to close a joint account as her partner keeps running up debt on it. They had it down to zero, went to bank to close it but apparently later found out the bank person had not closed it properly and the partner started dipping into the overdraft again. This has continued and she can't stop him. What options does my friend have?

Can she close it herself or do both parties need to go into the bank to sign and close it?
Can she ask the bank at least to freeze access to any money from the account by explaining the situation?
Can she complain based on the fact the bank hadn't closed it properly in the first place (due to an incompetent named member of staff) and get any compensation as she's now in a worse situation than when they 'closed' it to try improve things the first time?

Nightmare. I don't know what to advise any more. If any one can help I'd be grateful for any pointers as getting a bit out of my depth now but desperately want to help.

Thanks

galvanizersbaby

Hi

I had a similar sort of situ in the past
My bank manager was very helpful and as we both had separate cash cards it was clear to see who was withdrawing the money from the account so she put a hold on the cards.
Thankfully this put the frighteners up him and he cleared the overdraft and closed the account with both our signatures.

Your friend needs to speak to her bank manager

vcba

Thank you for your reply. Good to know that banks are helpful on this. My friend doesn't think he has a bank card or cheque book to keep paying for things with but I think he must have a secret card so stopping the cards would help in that situation as I guess trying to make a purchase from a shop would get stopped at the til as card would be refused would it? Not sure if this would stop cash withdrawals at bank or not but hopefully the bank could flag something up on their system. Not quite sure how payments going out of account exactly or how my friend is checking the account (whether by statement or phone) but you'd think she could get more details from bank to find out how money is being withdrawn.

Did you have to speak in person to bank manager or did you manage to just speak to someone on phone to do this?

Thanks

belle2008

I work in a bank, I would say it is definatly better to go in and speak to the manager in person if you can. (They are not that scarey honest!) She has every right to complain about the account not being closed in the first place, the manager will be obligated to help her out. Not sure about compensation, if they had split up it would be different, but if they are still together I think basically both of them are still responsible for any actual spending that happens on the account...but its worth asking. (Although just to let you know, in my bank the managers have very little power to refund charges etc anymore, even when they want to.)

zzzLazyDaisy

My friend had the same problem. The bank refused to close the account without both signatures and he refused to sign. The problem was, although her husband was running up the overdraft, as the account was in joint names she was jointly liable for the debt.

In the end they split up and her solicitor informed the bank and they froze the account.

vcba

They did split up at the time of closing the account, that was the reason for it. Then when separated he couldn't get money from another account and the noddy at the bank chirped up with 'O but you have an inactive account here with an overdraft' so he was able to get back into it and run up several hundred pounds worth on the overdraft. So that happened when separated but now they are back together and he's started it again.

galvanizersbaby

vcba wrote: »

They did split up at the time of closing the account, that was the reason for it. Then when separated he couldn't get money from another account and the noddy at the bank chirped up with 'O but you have an inactive account here with an overdraft' so he was able to get back into it and run up several hundred pounds worth on the overdraft. So that happened when separated but now they are back together and he's started it again.

I didn't realise they were still together! :eek:
Sorry if this sounds a bit obvious but could your friend not just communicate with her 'partner' re his careless spending on their joint account?!

If I were her bank manager I would think she was a bit of a time waster tbh

splitnotes

You may not be able to 'close' the account as such, but either party can put a stop on money going out. (In the first place you had to sign an agreement that cheques etc didn't need 2 signatures and this is now rescinded).
Sounds to me that if she stopped the account and the bank restarted without her say so she should be able to get the bank to remove any subsequent spend from her name (get CAB advice). At least then that debt should be his not hers.
You are jointly liable for the debts on a joint account- but that is whilst the account is an agreed joint account that you have agreed to.

splitnotes

PS the person above who referred to the bank not letting them close the account without two signatures- that's probably something to do with the technical meaning of 'closing' an account. When I needed to I wrote to the bank and told them that I no longer agreed to a single person making payments from the account and they did that immediately.