Joint Account Problems

regularsaver1

No they will not get involved in relationship disputes

You can't usually get a £1500 overdraft straight away - this is usually based on the conduct of the account and the regular credits it receives.

Best way is ask her how she intends to clear the overdraft. This overdraft is authorised by the bank on the joint bank account because she applied for it.

Mark1234

And thats the frustrating thing....I did not know she was able to do this without my permission.

Why do you need 2 peoples agreement to remove a name from the account, but only 1 to increase the overdraft. After all, they are both account changes....

regularsaver1

to remove a name, you are signing to be removed and she is signed to apply for the account in her sole name - 2 different things

with a bank account you EACH have a card, meaning that either of you can make a withdrawal or apply for an overdraft. alternatively you can use a passbook account whereby you both must be present on a "2-to-sign" basis, but this is not a bank account and so no direct debit facility.

Mark1234

Thanks for your help.

Has anyone else got any sugestions on how to move forward with this one, or has anyone else been in the same situation??

Iamthesmartestmanalive

Mark1234 wrote: »

Thanks for your help.

Has anyone else got any sugestions on how to move forward with this one, or has anyone else been in the same situation??

Seek a solicitors advice and take civil action against your partner

The banks etc wont get involved though

She either needs to be instructed or agrees to remove you/repay the funds

[Deleted User]

Mark1234 wrote: »

Thanks for your help.

Has anyone else got any sugestions on how to move forward with this one, or has anyone else been in the same situation??

My understanding was that joint accounts create a "joint and several" liability, that means that you're both liable for either of your debts cretaed in that account (and both benefit from any positive balance).

The bank will not be willing to take you off the account whilst it's overdrawn, as they would be losing someone they could "chase" for the debt.

Have you tried discussing this with your partner? If you're breaking up and this is your OH grabbing the chance to get some money then maybe contact Citiizens' Advice. If not then sit down and talk about what the money was needed for and how it's going to be paid back. Shame she didn't talk to you about it first. A loan may be a better/cheaper option and ask her to put it in her name. You could then close the current account (and then open a joint account that doesn't allow overdrafts - eg a basic bank account or some savings accounts allow bill payments, Coventry netsave for one).

Badger_Lady

Mark1234 wrote: »

Has anyone else got any sugestions on how to move forward with this one, or has anyone else been in the same situation??

Yes, except in my case he didn't organise an overdraft, he just started spending money that wasn't in the account (resulting in £250 of bank charges)!

In my case (HSBC), I went into the branch and explained the situation (i.e. he was spending money without my permission and I didn't want to be involved). They put a "relationship dispute" on the account, which prevented anyone from being able to withdraw funds. We were only able to pay into it.

It was then up to us (jointly) to pay the money... thankfully, I convinced ex-Badger that he should be liable and he set up a standing order to the account.

Unfortunately, this agreement was only reached after the account had defaulted. That default on my credit record has resulted in me having to pay more interest on my mortgage, being refused a decent bank account, and my credit card providers questioning my limits.

My advice would be to freeze the account and try to pay it off. If your partner wants to carry on making withdrawals, she will have to open her own. Are you still together, BTW?

Mark1234

We are yes.

But, I obviously need to get this sorted incase it does come to a head and she wants me to pay half the money back.

Badger_Lady

Mark1234 wrote: »

We are yes.

But, I obviously need to get this sorted incase it does come to a head and she wants me to pay half the money back.

So, if you've spoken to her and she's refusing to cooperate, ask the bank to freeze all withdrawals due to a "relationship dispute". You can warn her of this first if you think it's appropriate.

Since it's an authorised overdraft, you will have plenty of time to pay it back (unless it's conditional on an income that isn't being met). Try to persuade her that she should pay it all back, but bear in mind that legally you will share the responsibility and that you might end up having to help out if you want to avoid damaging your credit history.

This is damage limitation, not a solution.

Mark1234

Many thanks for all your help. I do feel a little wiser....

I hope this post goes towards helping others aswell.

Thank You!!