***Help with joint account/loan!!!***

k8eann

Hi there
I am new to site but am looking for some help and cant seem to find a simular situation on any other forums (sorry if there has been something simular)...
Basically my Nan and Grandad have a joint bank account (Nationwide if thats relevant), and my Grandad took out a £1000 loan on 24/08/12 and passed away on 29/08/2012 (he soley signed for it)...
The bank has already been informed of his passing and are requesting that my Nan pay the full amount back to them within 14 days... Is she liable? She never signed for the loan but it is linked to their joint account? Even though the money has been taken out other money other money has gone in so there is still over a £1000 in the account!!!
Surely they shoudnt be demanding this as it was his loan? But im unsure how it works with being linked to their joint account?
There is some money to pay funeral and some of his debts but I am unsure how this would work and worried about the extra worry on my Nan...

BitterAndTwisted

Ask to see the loan application documentation so you can in whose name the loan was given. If the money was credited to their joint-account this suggests to me that it is a joint-liability and your Nan will have to repay it. Over what term was the loan granted?

Fire_Fox

Welcome! Debts linked to joint accounts are generally joint debts, otherwise the loan should be paid out of your grandfather's estate. Boards foor bank accounts and loans
http://forums.moneysavingexpert.com/forumdisplay.php?f=20
http://forums.moneysavingexpert.com/forumdisplay.php?f=12

pinkclouds

I'm sorry for your distress at this time.

It seems unlikely that your grandad spent £1000 in 5 days and that returning the money without paying any interest merely reverts your grandad's (and nan's) finances to the position they were in, a few days before his death. If he was the sole signatory then it is his debt and not your nan's debt. However, it must still be paid from his "estate", assuming he left enough money/assets to do so. Your nan is not being personally pursued for someone else's debt, although it must feel like it.

k8eann

It was over 24 months. Thats what I thought, ive had a look for it but dont seem to be able to find but Im sure they would give any other copy if we requested, thanks :-)

Thanks pink clouds... there will be money to pay it back out of his estate once dealt with just dont like this on her now and the 14 day demand... Ill look into the documentation once found or another sent out.

pinkclouds

BitterAndTwisted wrote: »

Ask to see the loan application documentation so you can in whose name the loan was given. If the money was credited to their joint-account this suggests to me that it is a joint-liability and your Nan will have to repay it.

The money could have been paid into any bank account, so I don't think it is relevant that it was paid into a joint account. The last time (many years ago) that my husband took out a car loan in his sole name, the money went via our joint account. It is certainly worth confirming the joint/sole status on the documentation, in case nan doesn't remember co-signing the credit agreement.

embob74

Just to add that a bank can take monies from your account if you also hold a joint account with the same bank.
It happened to my mum once - the bank took money out of her sole account to pay off the overdraft on the joint account which her hubby was using. Wouldn't have been so bad if they had given her some warning!

meer53

k8eann wrote: »

Hi there
I am new to site but am looking for some help and cant seem to find a simular situation on any other forums (sorry if there has been something simular)...
Basically my Nan and Grandad have a joint bank account (Nationwide if thats relevant), and my Grandad took out a £1000 loan on 24/08/12 and passed away on 29/08/2012 (he soley signed for it)...
The bank has already been informed of his passing and are requesting that my Nan pay the full amount back to them within 14 days... Is she liable? She never signed for the loan but it is linked to their joint account? Even though the money has been taken out other money other money has gone in so there is still over a £1000 in the account!!!
Surely they shoudnt be demanding this as it was his loan? But im unsure how it works with being linked to their joint account?
There is some money to pay funeral and some of his debts but I am unsure how this would work and worried about the extra worry on my Nan...

Where has the money gone in such a short space of time ? Was it to pay existing debt ?

I would imagine that in the space of 5 days it should still be in the joint account ?