Joint bank account

viio11

Dear All

Could someone please tell me whether if you have a joint bank account the other person can just run overdraft as they like it and can drag you into a debt? Surely I have to agree to that? Does the bank have to prove i.e. have signed agreement that I have agreed to that overdraft?

What if the bank have no copy of the agreement?or even a copy of the signed terms and conditions?

The bank is chasing me for the money on joint bank account with my ex and I dont remember ever signing or agreeing to an overdraft of £5000. I asked the bank for a proof that I owe the money, and they said that they do not have any formal agreement but that I owe it to them just because my name is on the account. I have not used the account for the past 5 years as I (wrongly) thought that my name has been taken off it when I separated from my ex.

thanks so much any help would be great...

missile

Many are caught this way. Unfortunately you are liable and AFIK there is no way you can get your name off the account until it is in credit.

I would suggest you sever all financial ties asap. An experian credit check will reveal any other debts your ex may have incurred in joint names.

viio11

Thanks so much. I do know - but if I the bank cannot prove that I owe the debt? Surely the onus is on the ank to prove rather then me to disprove?

Will speak to OFT tomorrow?

I may owe some i.e. 1000 or 2000 but not 5000?

Agrrrrrrrr....so frustrating....

Paul_Herring

viio11 wrote: »

Thanks so much. I do know - but if I the bank cannot prove that I owe the debt? Surely the onus is on the ank to prove rather then me to disprove?

You both owe the debt on a joint bank account and you can both be asked to repay it; you have to sort it out between yourselves who actually pays the debt - it's what's known as "joint and severally liable" - it doesn't matter (to the bank) who actually runs up the debt.

And you agreed to this when you opened the joint account - sorry.

Elsewhere

No help to the OP sadly, but I thought this might be interesting as it looks as if banks might be tackling this issue.

My husband and I have had a joint account with the Natwest for many, many years, and have been in the fortunate position of never having had an overdraft. Anyhow, this week we had a letter from them asking if we wanted to change the conditions on our account from either party being able to take it overdrawn, to both having to agree before it could go into the red. If we took no action, the bank said it would assume either party could make the account overdrawn (ie. as it always had been) without the explicit permission of the other. As it seemed like an extra barrier to identity fraud, we decided to opt for the "both must agree".

Maybe now, when you open a joint account, you can specify who has to give permission for the account to be taken overdrawn?

vaporate

I wouldn't own up to anything.

Send the bank a prove it letter first.

The letter below is just an example and could be wrong so just research something along those lines.






Dear Sir/Madam

Re:− Account/Reference Number 4563210025897412

I do not acknowledge any debt to your company.

With reference to the above, we would be grateful if you would send us a copy of this credit agreement, statement of account and notice of assignment.

We understand that under the Consumer Credit Act 1974 (Sections 77−79), we are entitled to receive a copy of our credit agreement on request. We enclose a payment of £1.00 which represents the fee payable under the Consumer Credit Act.

We understand a copy of our credit agreement should be supplied within 12 working days.

We understand that under the Consumer Credit Act creditors are unable to enforce an agreement if they fail to comply with a request for a copy of the agreement under these sections of the Act.

We look forward to hearing from you.

Yours faithfully

PNPSUKNET

its not the same inregards to CCA with bank accounts

viio11

Just want to say a big thank you to everyone.

In relation to the debt I do know that if the account was joint which it was we both are responsible. However, my ex is now really ex and was for some time. He is violent (hence the divorce) so there is no way I want to "sort it out" with him.

The bank may have had agreements with him re:overdraft and who knows what they have agreed but the point I am making is that I have not agreed that. I may have agreed to an overdraft of 1000 pounds but not 5000.

Surely it is onus on the bank to prove it so thank you for your template letter, which I would like to send.

My ex may have forged my signature who knows and that is why the bank should send me a copy of the agreement so that I can see what I have agreed to...

Someone said that bank accounts are not the same as cc...something what does that mean?

thanks so much...

p.s. any regulation governing the bank account agreements would be great...and thanks so much...again!

viio11

p.p.s. just to say that I have informed the bank in 2005 that we have separated so the bank then knew that this bank account may become disputed or that it may become a problem - the bank refused to freeze it at least and allowed him to just accumilate the debt (without my knowledge) how nice is that. I spoke to the bank on the phone and they were so horrible (I assume that they must have sold the debt as only those companies are so agressive) I was actually in tears after that conversation...and all I wanted to ask is what address to reply to and the guy on the phone was saying you have to repy this debt it is yours we dont care about anything else etc ... my ex was agressive and violent and so is the bank - I am now really angry with them!

The point is I will repay what I owe - but not what I dont. I susspect that majority of those 5000 is bank charges and once I ascertain what I owe I will then deal with unfair charges! I hate bullies!

ninky_2

unfortunately when you take out a joint account this is the risk you run. you basically agree to tie yourself financially to the other person and their decision (to have an overdraft on the account etc) is effectively your decision. it's one reason why i will never have a joint bank account. there are far too many disadvantages.

viio11

Just spoke to the Consumer Direct and they advised me that if the bank cannot prove it they cant enforce the debt. The relevant sections of the consumer act are 77, 78 and 79. So I will now wait for the bank to send me the relevant documents to prove that I do owe the money...

I never wanted to look out for a loopwhole to get out of it - I do want to pay what I owe as I always have just not want I do not!

Thanks so much everyone....