My ex-bank sent my VAT return payment to debt collectors??

nova11

Hi
My husband as a sole trader was made bankrupt last september and was advised by the official reciever that it would not be in our bank's interest to close our joint personal account (his business account was with a different bank altogether). However the HSBC bank when informed did closed our joint accounts without any notice what so ever and have stated that as my husband was made bankrupt they are holding me accountable for re-payment of our joint overdraft as I have not been made bankrupt. Very shortly after this I was made redundant and we have not since then been in a position to repay the overdraft. My first question is can they do this?

Secondly - Following my redundancy I have just set up my own business, as it is in the very early stages I am still struggling financially. To make matters worse, my first ever VAT return payment was sent to one of the above closed accounts (my mistake for not changing my bank account details soon enough with HMRC). This payment was not bounced back to HMRC by the HSBC but sent instead to their debt collection agency. I have been chasing this payment for a few months now and have only just found this out. I have never received anything from either the HSBC or Metropolitan informing me that this had taken place. Are they allowed to do this??

Any clarification would be greatly appreciated.:huh:

RAS

Hi and welcome

If you own a joint account and one person goes bankrupt, then the other person becomes whooly liable for the debt. That is what joint liaibility means.

With respect to the payment, I believe that unless it is a benefits payment, they can use any money that is paid in to reduce the debt.

Have you started to reclaim any charges on this account?

piptom&AndyPandy

Hi
I had a similar experience with HSBC and a refund to the wrong account, instead of bouncing it, it went to the debt people re overdraft in my opinion HSBC are......
Sorry to hear re joint account.

Regards
Pip
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