Separation and Joint Bank Account

cloud_dog

Hi

I posted the below over on the Marriage and Relationship board but haven't received any real feedback so thought I'd try over here......

cloud_dog wrote: »

Hi

I have a query on behalf of a friend.

She is separate from her husband but they have a joint current account which he has continued to use as his main account. She has on occasions obtained statements from the bank just to check on balances etc but recently she went in to the bank to get a statement and was told they were unable to provide the info as there was a 'block' or something like this against her.

Is anyone able to confirm the legal situation regarding joint accounts?

My understanding was that any variation of a joint account could only be undertaken with authorisation from both parties.

The bank in question is the HSBC.

Gaining access online is not something under discussion here. But she is keen to understand what legal obligations the bank have and is wondering what or how they could have implemented the said 'block' probably based on the other account holders instigation.

Any insight would be welcome.

Thanks

Thrugelmir

Why was she monitoring the account ? Perhaps the other party has requested the block.

Mojisola

Thrugelmir wrote: »

Why was she monitoring the account ? Perhaps the other party has requested the block.

I'd want to make sure that the ex wasn't running up an overdraft on an account with my name on it.

Why they still have a joint account is hard to understand.

HOWMUCH

If I were her I would remove my name from the account.

cloud_dog

Hi

Thanks for your reply's and accepting all the reasons why you would separate / close the joint account I (she) is still interested in understanding how HSBC can take arbitrary action against one party on a joint account.

My basic understanding is that the bank usually will not take any action against one party on the say so of the other party. My understanding is that it needs to be documented/agreed by both parties and usually banks are unable to remove a holder from a joint account, usually the joint account is closed and new individual account(s) are opened.

Anyone with any more insight / understanding on how banks (HSBC) can operate regarding the original question?

System

She can in theory as long as the account is not overdrawn but many banks prefer both parties agree to the change.

Just to clarify for the OP, either party can do pretty much anything else on a joint current account including put it into dispute and freeze it.

HOWMUCH wrote: »

If I were her I would remove my name from the account.

eskbanker

Your friend needs to familiarise herself with the terms and conditions HSBC operate in conjunction with joint accounts, which are laid out in Part D on page 16 of their main Ts & Cs document.

In particular,

22.1. Unless this conflicts with another authority
given in writing on the joint account, and until any
one of you cancels this authority, you authorise us to:

[...]

• accept instructions signed or given to us by
any one of you to act on behalf of you all in all
other transactions with us, including providing an
overdraft or other facility, opening further accounts
in your joint names and closing accounts in your
joint names, but not including converting a joint
account to a sole account (see clause 22.7 for
more details). In such a case, you consent that any
information we may need to send you may be sent
to only one of you.

cloud_dog

eskbanker wrote: »

Your friend needs to familiarise herself with the terms and conditions HSBC operate in conjunction with joint accounts, which are laid out in Part D on page 16 of their main Ts & Cs document.

In particular,

Thanks for the quotes. I have actually read through the T&C but...... Your point is not relevant, the account has not been closed some sort of 'block' (is the only way I can describe it) has been placed on the joint account which stops her from having access to the joint account. It is still operational for the OH.

This doesn't make sense in my opinion and under their T&Cs. anything which affects one party (ignoring overdraft etc etc etc) must be agreed, signed for by both parties.

I am still no clearer. I cannot HSBC to discuss (for obvious reasons) and she is not particularly in a state to do this herself.

I think her best course of action is to notify HSBC that the account is in dispute and for HSBC to freeze the account until whatever has or is happening has been clarified.

Thrugelmir

Accounts can only be blocked on reasonable grounds and account holders have a right to know why.

eskbanker

cloud_dog wrote: »

Thanks for the quotes. I have actually read through the T&C but...... Your point is not relevant, the account has not been closed some sort of 'block' (is the only way I can describe it) has been placed on the joint account which stops her from having access to the joint account. It is still operational for the OH.

This doesn't make sense in my opinion and under their T&Cs. anything which affects one party (ignoring overdraft etc etc etc) must be agreed, signed for by both parties.

I didn't say anything about closure, but clause 22.1 seems to me to say that they'll take instructions from either party rather than requiring both ("you authorise us to...accept instructions signed or given to us by any one of you to act on behalf of you all in all other transactions with us...").

However, if they also state somewhere that "anything which affects one party (ignoring overdraft etc etc etc) must be agreed, signed for by both parties" then yes, that would contradict 22.1 - which clause are you quoting or paraphrasing from?

Thrugelmir

What does clause 22.7 say?