problems with joint accounts

pete.bate

A friend has a problem with being removed from a joint account, the bank just say the other person has to sign the form. Well that person is refusing because the break up has not been a good one.

They have been back several times and told them this and at no time did they offer to put the account as under dispute (frozen). This has meant bank charges were growing as the other party has been allowed to go into the over draft.

My friend has paid money in to get it back in credit - and again was not advised as long as it was in credit they did not need the other signature. Shortly after my friend had been to the bank to do this, the other party withdrew this money keeping the account overdrawn.

This is as short as I could make the sorry tale, both the assistant Manager and Manager state there is nothing they can do. I disagree and this is a tale of staff errors (training issues).

We are going to send a letter of complaint to head office and the omni-busman. Is there anything else we can do and what should we expect to get back as we are talking 100's £ now.

YorkshireBoy

And the bank is?

xylophone

[PDF]
You and your joint account - British Bankers
Available on the net

Gizmo247

Tell your friend to get the account frozen. Only one signatory required for that. Neither party will be able to withdraw money but you friend can pay into the account to put it back in credit. Then take things from there.

pete.bate

Thanks the bank is TSB.

As soon as I heard about the problem I got a meeting with the assistant manager and got the account frozen.

My question really is do they have leg to stand on to get the 100's of pounds paid in to get into credit and the other party then taking it out. As I see it the staff should have known about freezing the account, because not many people know about it especially my friend.

YorkshireBoy

They need to refer to their T&Cs, specifically section 12.

There were two ways to get this matter resolved.

The first way was to use condition 12.1(a) as soon as the account was placed in credit, ie the account can be closed with just one signature (provided they're not aware of a dispute).

The second way was to make them aware of the 'dispute' and let them deal with the freezing under condition 12.1(i).

Your friend went the second way and LTSB 'chose' not to freeze the account. They have a right not to do so under condition 12.1(i)...see the wording "we may take steps...".

Your friend needs to ask for their reasoning behind the decision not to freeze the account. Hopefully they'll get some goodwill.


http://www.lloydstsb.com/assets/media/pdfs/personal_banking_terms_and_conditions2.pdf

pete.bate

Thanks for that.

Its what I thought.

The A Manager said the staff should have know about putting the account into dispute but not for them to offer it???

The manager told me as soon as the account was in credit they could have been taken - again the staff members did not know or offer it?? As my friend did this a few times.

We will see what head office has to say.

olly300

Your friend should have - even if they had got hand delivered to the counter staff- put all requests in writing and kept a copy.

Now your friend doesn't have a record of what s/he requested and the dates which means it makes it much harder for them to take their complaint further.

Dragonista

FWIW our friends just separated and "he" can't remove "her" from the account. Not because she won't sign but because it's not allowed at their bank. They're having to close all their accounts. A nightmare when you have payments set up. But that's just the way it is at many banks.

JuicyJesus

I'm surprised they didn't pick up on it. "Me and my partner have split up..." and the like, even in passing, should set off alarm bells within the bank. It's even possible they might have blocked the account without their consent, as it protects all involved if they do so (customer doesn't get done over - bank doesn't get a massive debt nobody wants to repay).

However, I don't think they'd be responsible for doing so. And if one party pays money into a joint account that isn't frozen, why on earth would they blame the bank for the other party doing what they're legally entitled to do and withdraw it? Monies in a joint account belong to both parties equally, as does any debt.

happy_bunny_2

Send the complaint signed for. They have 8 weeks to sort it or you can refer to the FOS. You can't refer to FOS before then:
http://www.financial-ombudsman.org.uk/consumer/complaints.htm