Fees on a frozen account

Dumbledore55

I'm looking for some advice please.

If a joint account is frozen due to a marital dispute, can the bank keep adding bank charges to make the account go over its overdraft limit?

Thanks

DD55

Dumbledore55

Forgot to say the account is with the co-operative bank. Thanks

MumOf2

Not sure about the Co-op, but certainly Lloyds do keep on adding fees and interest to accounts frozen due to marital dispute. I did manage to negotiate a one month interest holiday though - worth going into the bank and talking to the manager if there is one.

MumOf2

Dumbledore55

Thanks for your thoughts. I have a friend who used to work in banking who thinks that the bank is not allowed to cause the account to affect my friend's credit rating.

My friend has left his wife, she ran up the joint account to the overdraft limit despite him giving her £1100 per month maintenance. He contacted the bank and got them to frreze the account because of the marital dispute. He then took over paying the mortgage, life insurance etc and paid his ex an amount over and above that. The Co-op have been adding interest to the account which has now caused it to go over the overdraft limit. He only discovered this whe he applied for a credit card and got refused.

He and his estranged wife have sole accounts with the Co-op - my friend the ex bank employee thinks that any interest should have been applied to their sole accounts and not the joint account. He thinks its out of order for them to affect their credit rating. Does anyone know if he's right?

Thanks,

DD55

Extant

No, the interest should be added to the joint account, as that's where the debt is.

Ultimately, the debt is still in force and it is a joint liability. It will, as such, have an effect on credit ratings, and it is very proper for them to continue adding the interest and charges - if they didn't, there'd be lots of customers with "matrimonial disputes" over their joint accounts, I'm sure.

The bank freezing the account is to prevent any further drawings from the signatories on their own, and that's about it.

jambosans

Like BarclaysManger has said, and similar to my understanding, the bank freezing the account is merely to prevent it's use while the parties are in dispute. The debt is still joint and still subject to interest/ charges if it is not being paid.