Joint Account Overdraft Problem

tartan_julie

Is there a way to remove someone from a joint account while still in overdraft? If im prepared to sign whatever document to accept full responsibility for overdraft? Have requested this from bank but they refused until overdraft is paid in full.

mt99

Don't know your personal circumstances but could you open an account at another bank with an overdraft facility and use that overdraft to repay your existing overdraft?


Or - check first with your bank that they can give you an overdraft in your name once you have repaid and removed the other person, and if so use short-term borrowing to repay (eg friends, credit card etc)

grumbler

tartan_julie wrote: »

Is there a way to remove someone from a joint account while still in overdraft? If im prepared to sign whatever document to accept full responsibility for overdraft? Have requested this from bank but they refused until overdraft is paid in full.

They refused - this says it all.
Why would they allow this if now they can chase both/either of you for the debt?

Open a new sole account and stop the other holder from spending on the old one by asking the bank to put it into "dispute" status.

MattTheMoneyGuru

I believe it is possible even with an overdraft, as long as you pass their assessment for the lending facility on a sole applicant basis.

Perhaps this was why they wouldn't approve this.

Anthorn

The bank refused and the only other option would be a court order. Personally, I think it's a fairly simple process of removing one party from the agreement and leaving the remaining party fully liable for the debt if both parties agree.

grumbler

Anthorn wrote: »

...Personally, I think it's a fairly simple process of removing one party from the agreement and leaving the remaining party fully liable for the debt if both parties agree.

Well...
Let's take this to extreme.

Husband and wife owe bank £1K - solely and jointly liable.
Husband has a good credit history, has been employed for a long time and remains employed after the divorce.
Wife has a bad/no history, is unemployed and never worked.
They two agree between them that the wife is liable for the full £1K.

Does it really surprise you that no bank will ever agree to remove the husband from the account?

Other cases can be less extreme, but it's understandable why banks never agree to this voluntarily.

Anthorn

grumbler wrote: »

Well...
Let's take this to extreme.

Husband and wife owe bank £1K - solely and jointly liable.
Husband has a good credit history, has been employed for a long time and remains employed after the divorce.
Wife has a bad/no history, is unemployed and never worked.
They two agree between them that the wife is liable for the full £1K.

Does it really surprise you that no bank will ever agree to remove the husband from the account?

Other cases can be less extreme, but it understandable why banks never agree to this voluntarily.

If we're taking it to a court of law we should not give two hoots about what the bank says: The court has the last word. As I said in my post, it's a simple process to remove one party of an agreement if both parties agree.

jonesMUFCforever

Anthorn wrote: »

If we're taking it to a court of law we should not give two hoots about what the bank says: The court has the last word. As I said in my post, it's a simple process to remove one party of an agreement if both parties agree.

Not if one party to the agreement is the lender.

Nebulous2

grumbler wrote: »

Well...
Let's take this to extreme.

Husband and wife owe bank £1K - solely and jointly liable.
Husband has a good credit history, has been employed for a long time and remains employed after the divorce.
Wife has a bad/no history, is unemployed and never worked.
They two agree between them that the wife is liable for the full £1K.

Or ... couple in a lot of debt move as much of it as possible into one name. That person then declares bankruptcy.

PeacefulWaters

I'm not aware that courts have the power to order a bank to remove a party from a joint account.

JuicyJesus

PeacefulWaters wrote: »

I'm not aware that courts have the power to order a bank to remove a party from a joint account.

I suppose technically they could, or at the very least could declare the debt unenforceable against one or the other of the parties. The question is why they would.