Can I remove my husband from my joint account to protect his credit rating from my debts

karigan_2 · 12 November 2019 at 9:10PM

Hi. I know the answer to this is 'ring the bank and Step change' and I'll be doing so tomorrow morning once they're open.

Ok trying to be brief. I have a DMP with Step change and have had it since May 2019. I owe £22,000 - most of which is with HSBC. (20,000 ish) This is between a £12,000 loan which I believe to only be in my name, a £3500 credit car which is definitely in my name only and a £4,500 overdraft on our joint account.

I turned my personal account into a joint one about 10 years ago so that my husband could build up his credit rating and get an account of his own with HSBC (due to only having a nationwide teenage style basic account with nationwide from 13-24 year old he initially wasn't even passing HSBC's 'open a current account check)
Anyhow, he opened his own current account and we never used my bank as a joint account and he had no idea of my financial situation. I got into all the above debt due to living beyond my means and then having a year off work on maternity leave without saving anything towards it and getting further and further into debt. My husband found it about all my debt in March and has been really great to stick by me even though he didn't know about any of it. I've stuck to the terms of my DMP and my credit score is building back up marginally every month.

My husband has checked his credit score this evening and has discovered that as he is linked to me through the joint account but not part of my DMP that he is classed as 'defaulting' on Hsbc every month. He reckons this will be a regular thing, that every month I make the reduced payment to HSBC then he will get an additional default until my DMP ends in 2024 and at THAT stage it will take 6 years to clear off his credit report.

So in an effort to reassure me (if anyone knows more than I do) I have two questions,
On his online banking it shows our current account overdraft (but NOT the loan) I've interpreted this as them not holding him accountable for the loan as it doesn't show up anywhere in his online banking. Is this correct?
Secondly, what do you reckon my chances are of convincing HSBC to.remove him from the joint account? I reckon if I managed this it should then immediately improve his credit score as it will stop it registering as a default every month from now on.

Carrot007 · 12 November 2019 at 9:12PM

They will not remove him while the account is overdrawn.

Maybe not what you want to hear, but think about it from their side. Why absolve someone of debt responsibility when you have not reason to.

karigan_2 · 12 November 2019 at 9:16PM

Thanks. I suspected this might be the case.

I do see that they have no vested interest to remove him but I feel horrible for my husband.

Ta for the quick reply.

jwil · 13 November 2019 at 9:05AM

If the overdraft in joint names is part of the DMP then it will affect him.

My DMP accounts are all my own, and none of our joint accounts are included (they are all up to date). As a result my husband's credit rating has not been affected.

richardadc · 13 November 2019 at 10:46AM

Is his personal current account with HSBC? If so they may remove money from that to pay for the defaulted joint account. Something to be aware of.

EssexHebridean · 13 November 2019 at 1:37PM

I'd suggest you would both be well advised to open alternative accounts with a bank not part of the HSBC group.

karigan_2 · 13 November 2019 at 3:12PM

Thanks all.

The joint account with HSBC was frozen by them as part of the debt management agreement. I was offered a new account with them but chose to open one with Lloyds instead (after seeing advice on here)

We went to a meeting in March with the local branch as I was sorting everything out and they did assure my husband that they wouldn't take any funds from his sole name current account as that wasn't their policy. I might remind him that it would be a sensible idea to move his account to a different bank as well.

Still trying to get through to HSBC but their wait times are huge today. Will keep trying.

EssexHebridean · 13 November 2019 at 4:28PM

I'm going to suggest if you see this in time that he opens his new account BEFORE you speak with HSBC....I'm a naturally suspicious character, that I know, but still...!

daisyfrau · 15 November 2019 at 4:48PM

Can I ask out of interest how you guys manage your finances/bills etc between you guys? I only ask as you mention maternity leave being part of your debt and just wondering if you had to finance that yourself or if your husband contributes to the bills, childcare etc.

Can I remove my husband from my joint account to protect his credit rating from my debts

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