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Halifax won't remove my name from joint account
fridgee
Posts: 10 Forumite
Short version:
Halifax received forms to remove my name from a joint current account and a joint savings account. They only actioned the savings account and gave me some false reasons why I couldn't be removed from the current account. During the ensuing disagreement with the bank the other joint account holder took the account overdrawn and now Halifax won't even consider removing my name because the account is in debt. It is wholly their fault that my name remained on the account. Are there any actions I can take to get my name removed and/or protect myself from the debt the other account holder has run up?
Full version:
In August my ex-partner and I signed forms from Halifax to remove my name from our two joint accounts - one reward current account and one online saver account.
When I went to submit the forms to my local branch the account was in credit (i.e. not overdrawn). I was told that the branch could not remove my name from the current account because my name happened to be first, the only option was to close the account, which I had agreed with my ex-partner not to do as he still wanted the account. This was contrary to what I had been told at a different Halifax branch where I had originally picked up the forms and contrary to anything written in the terms and conditions of the account. Despite being adamant that my name could not be removed in branch the advisor took the forms to send to head office instead for them to process. We thought that was the end of the story.
Several weeks went by and I had still not been removed from the current account, although my name had been removed from the savings account (despite also happening to be listed as the first name on that account too). I went to the branch where I handed the form in to query this and it was repeated to me that my name could not be removed because it happened to be listed first. In the meantime my ex-partner, thinking the account was now in his sole name, had been using the account and had taken it overdrawn. So now they had an extra reason to refuse to remove my name, since they won't remove one of the parties on an account if there is a debt on it (which is why I had made sure it was not overdrawn at the point of submitting the forms).
Next we arranged a meeting at the original branch where I had obtained the forms initially to try to sort out a solution and get my name removed as I clearly do not want to be liable for my ex's debt. I have not used the account since the date the forms were signed. At the meeting we were told that the reasons the other branch had given for not actioning the request to remove my name from the current account were not valid (as I thought) and that I should have been removed immediately, at which point the problem of the account becoming overdrawn would never have been an additional complication. This error was confirmed in writing by the branch manager.
In all fairness the woman we saw was very helpful and apologetic for the other branch and tried numerous ways with head office over the phone to resolve the problem, including trying to set up my ex his own account and transfer the overdraft to his new account so our join account could be closed, but they would not grant him an overdraft in his name only so she couldn't transfer it.
At this point the account is now over the overdraft limit (£3500) and rapidly accruing charges (£5/per day while over the overdraft limit, a minimum of £1/per day for any use of the overdraft at all). My ex has agreed to start trying to pay off the overdraft in the new year, but at that magnitude its going to take him a very long time, even if I trusted him to do that.
I have a letter drafted to send to the bank stating I accept no liability for any debt after the date the forms were submitted, as this is wholly their error. Any other suggestions as to how I can get my name removed and/or protect myself from the debt my ex has run up? I understand I have to wait 8 weeks from sending this drafted letter before I can appeal to the financial ombudsman, and even then I'm not sure what they could do. Thanks in advance for any help/suggestions, let me know if there are any other details that might help
Halifax received forms to remove my name from a joint current account and a joint savings account. They only actioned the savings account and gave me some false reasons why I couldn't be removed from the current account. During the ensuing disagreement with the bank the other joint account holder took the account overdrawn and now Halifax won't even consider removing my name because the account is in debt. It is wholly their fault that my name remained on the account. Are there any actions I can take to get my name removed and/or protect myself from the debt the other account holder has run up?
Full version:
In August my ex-partner and I signed forms from Halifax to remove my name from our two joint accounts - one reward current account and one online saver account.
When I went to submit the forms to my local branch the account was in credit (i.e. not overdrawn). I was told that the branch could not remove my name from the current account because my name happened to be first, the only option was to close the account, which I had agreed with my ex-partner not to do as he still wanted the account. This was contrary to what I had been told at a different Halifax branch where I had originally picked up the forms and contrary to anything written in the terms and conditions of the account. Despite being adamant that my name could not be removed in branch the advisor took the forms to send to head office instead for them to process. We thought that was the end of the story.
Several weeks went by and I had still not been removed from the current account, although my name had been removed from the savings account (despite also happening to be listed as the first name on that account too). I went to the branch where I handed the form in to query this and it was repeated to me that my name could not be removed because it happened to be listed first. In the meantime my ex-partner, thinking the account was now in his sole name, had been using the account and had taken it overdrawn. So now they had an extra reason to refuse to remove my name, since they won't remove one of the parties on an account if there is a debt on it (which is why I had made sure it was not overdrawn at the point of submitting the forms).
Next we arranged a meeting at the original branch where I had obtained the forms initially to try to sort out a solution and get my name removed as I clearly do not want to be liable for my ex's debt. I have not used the account since the date the forms were signed. At the meeting we were told that the reasons the other branch had given for not actioning the request to remove my name from the current account were not valid (as I thought) and that I should have been removed immediately, at which point the problem of the account becoming overdrawn would never have been an additional complication. This error was confirmed in writing by the branch manager.
In all fairness the woman we saw was very helpful and apologetic for the other branch and tried numerous ways with head office over the phone to resolve the problem, including trying to set up my ex his own account and transfer the overdraft to his new account so our join account could be closed, but they would not grant him an overdraft in his name only so she couldn't transfer it.
At this point the account is now over the overdraft limit (£3500) and rapidly accruing charges (£5/per day while over the overdraft limit, a minimum of £1/per day for any use of the overdraft at all). My ex has agreed to start trying to pay off the overdraft in the new year, but at that magnitude its going to take him a very long time, even if I trusted him to do that.
I have a letter drafted to send to the bank stating I accept no liability for any debt after the date the forms were submitted, as this is wholly their error. Any other suggestions as to how I can get my name removed and/or protect myself from the debt my ex has run up? I understand I have to wait 8 weeks from sending this drafted letter before I can appeal to the financial ombudsman, and even then I'm not sure what they could do. Thanks in advance for any help/suggestions, let me know if there are any other details that might help
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Comments
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What a nightmare, but at least you have a complete and coherent account of the happenings to date, and you are doing the right thing to write to them. You should make sure they understand your letter is a formal complaint, and get some proof of delivery.
You could also mention in your letter that your next step will be to contact the Lloyds Group Director for Halifax, David Nicholson. Guys like him will have an Executive complaints team that is generally equipped with more brains and powers to make things happen. Best way to lodge your complaint with them is an email to davidnicholson at halifax dot co dot uk (sorry about the weird writing but the MSE Forums software will wipe out proper emails). May be, if you had enough already of the proceedings so far, write to him straight away.0 -
Thanks Archi Bald I think I will just send it straight to him, feels like I've been banging my head against a brick wall for long enough! I will be sure to make it clear that it is a formal complaint.
Anyone have any other ideas how to protect myself in the meantime? I'm so worried about the debt spiralling out of control while my name is still on the account. I certainly can't pay that off if they decided to come to me for it.0 -
Whilst the debt is in dispute they should be adding charges to it, but they may add them back on if they don't agree with you.
I think this will go to the FOS.0 -
Whilst the debt is in dispute they should be adding charges to it, but they may add them back on if they don't agree with you.
I think this will go to the FOS.
Shouldn't be adding charges to it.
Knowing my dealings with LBG in the past, this probably will end up with the FOS.
CK💙💛 💔0 -
Well I haven't technically put the account in dispute. I know I could freeze the account by putting it in dispute, but that would screw over my ex moneywise, which I don't want to do, and since its Halifax's error that put us in this situation it doesn't really seem fair to cause him a load of issues. So as it stands he can use the account while I am still trying to get them to take my name off.0
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It looks like your ex would not have qualified for they type of account, nor the overdraft, had you not been party to the account, especially as he has run up over £3500 in three months. I wonder if this is why they could not remove your name?
Personally, I would want to prevent him from using my good name to run up any further debt, so would definitely put the account in dispute until the matter is resolved.
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It looks like your ex would not have qualified for they type of account, nor the overdraft, had you not been party to the account, especially as he has run up over £3500 in three months. I wonder if this is why they could not remove your name?
Personally, I would want to prevent him from using my good name to run up any further debt, so would definitely put the account in dispute until the matter is resolved.
Be prepared for them to say that it isn't in dispute, though, and probably pass it to DCAs.
Sorry, but I'm just trying to give you worse case, based on dealing with other cases.💙💛 💔0 -
I was told that the branch could not remove my name from the current account because my name happened to be first, the only option was to close the account, which I had agreed with my ex-partner not to do
Sorry just read this bit again, there is a caveat in the terms and condition which states that they have the right to request that the joint account is closed and new accounts in individual names are opened (its in the bit about accounts becoming in dispute). I am guessing that the original branch gave general account information and the branch that refused to remove your name had more specific information that would prevent your name alone from being removed. As you say you said you did not want to close the joint account and open new accounts, I would say that you will end up being equally liable for the the debt as the request to remove your name from the current was rejected???0 -
Unless they've formally rejected the request to the OP in writing, I believe the OP to be in a strong position. The Halifax has been notified of the problem, they've chosen not to act on it. I doubt whether they'll even let the FOS go to adjucation on it.0
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The correct course of action for Halifax would have been to block the account as soon as they were notified of a dispute between parties, something which should have been self-evident. It is their failure to do so that has led to the debt arising. I agree that the OP is in a strong position. They may not be able to escape liability for all or part of the debt but they will most likely be compensated.
Formal complaint escalated to FOS if there is no satisfactory resolution is the way forward.urs sinserly,
~~joosy jeezus~~0
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