Bank won't close old joint account with ex

mo2815

I had a joint bank account with ex, relationship ended over 3 years ago. The bank account was eventually frozen but ex had notched up £1700 in overdraft. Ex paid child maintenance to me and his van payments with the account. The bank agrees I shouldn't be held responsible for debt as it was proven with them but will not close the account and ex will not pay it and I cannot afford to pay it off. He just pays token amount now and then after court threats from bank and then defaults again. How can I ever get out of this as he will always have bad credit rating and mine was always good until this but I'm tied to him through old joint account???

paragon909

mo2815 wrote: »

I had a joint bank account with ex, relationship ended over 3 years ago. The bank account was eventually frozen but ex had notched up £1700 in overdraft. Ex paid child maintenance to me and his van payments with the account. The bank agrees I shouldn't be held responsible for debt as it was proven with them but will not close the account and ex will not pay it and I cannot afford to pay it off. He just pays token amount now and then after court threats from bank and then defaults again. How can I ever get out of this as he will always have bad credit rating and mine was always good until this but I'm tied to him through old joint account???

If you have evidence to show the debt is not yours then I would try complaining to the financial ombudsman service maybe provide them a copy of your recent credit file showing any defaults because of the debt that isn't yours.

anoncol

paragon909 wrote: »

If you have evidence to show the debt is not yours then I would try complaining to the financial ombudsman service maybe provide them a copy of your recent credit file showing any defaults because of the debt that isn't yours.

But it's a joint account?

paragon909

I suggest the OP reads this then,

https://www.citizensadvice.org.uk/debt-and-money/banking/joint-bank-accounts/

Joint account holders are not automatically allowed to use each other's credit. Credit must not be linked to the account of one of the account holders without the agreement of all the other account holders. This is because the other account holders would then be responsible for the debt.

So I suggest going to FOS to remove any links of credit such as defaults against debt the OP proved isn't theirs.

henm2

On a joint account you are both jointly and severally liable for any outstanding debt on it. That is the bank will normally try and claim from both of you to try and repay the amount owed on an overdraft.
Not until the overdraft is repaid would the bank accept closing instructions signed by both of you.

If however the bank decides to write off the amount owed to debt collectors and then close the account (you will have received various demand letters before that happens) then the credit rating for both of you will be affected for several years.

System

I suggest the OP reads the T&Cs of their account.

I'm inferring that the OP has only raised a dispute after the account went overdrawn - then their only remedy is to pay off the overdraft.

The FOS will not help unless the bank has allowed the overdraft AFTER it has been notified that the account holders are in dispute.

paragon909 wrote: »

I suggest the OP reads this then,

https://www.citizensadvice.org.uk/debt-and-money/banking/joint-bank-accounts/



So I suggest going to FOS to remove any links of credit such as defaults against debt the OP proved isn't theirs.

mo2815

There have been many demands and court papers but ex then pays token amount and sets up payment plan then defaults. This will go on and on. Bank is very sympathetic to me as they have all the proof regarding it was ex not me. The bank even sent me a small cheque for the distress but still link me to the debt. Is it likely the Financial Ombudsman would be able to sort this mess out fairly?

jonesMUFCforever

mo2815 wrote: »

There have been many demands and court papers but ex then pays token amount and sets up payment plan then defaults. This will go on and on. Bank is very sympathetic to me as they have all the proof regarding it was ex not me. The bank even sent me a small cheque for the distress but still link me to the debt. Is it likely the Financial Ombudsman would be able to sort this mess out fairly?

In a word NO - not to your liking anyway.
The only way to protect your credit files is to pay the overdraft (and accrued charges) THEN put the account in dispute.
This means he could not (same for you too) incur further borrowing on the account.

pinkdalek

Bank won't close the account because there is an outstanding debt.
If you want it closing, pay off the debt then take the matter further with your solicitor.
On any joint debt you are both responsible, irrespective (to the bank) who run up the debts in the first place.

Thrugelmir

My ex created a joint current account overdraft when we parted. In the end I paid it off fully myself. As in the overall scheme of things. My credit rating was what really mattered to me personally. Clearing the overdraft also removed a reason to have contact. Not having stress and hassle was priceless.

mo2815

I would if I had £1700 or money for a solicitor, single mum with his child so lots of stress and hassle unfortunately plus all his debts but thank you for trying to help.