Overdraft Question.

[jakey365]

Right this is complicated. I split with my ex a few months ago and I'm still trying to get my name removed from her Current account. She has an overdraft for �1500 and seems to live off that. She is never in credit, i know this because i can see from my accounts when i log onto internet banking. I have been informed by my branch that the account needs to be closed in order to remove my name and she will have to open a new account, but she keeps moving the goal posts when the time comes that we arranged to sort it out.

question is, what can i do if any thing to get it finally sorted, and can i get bad credit from her living off an overdraft??

[khana]

Unfortunately you are stuck as an account holder with her until the account is closed. Until the overdraft is repaid then you are equally liable for the debt and yes if it all goes belly up then it will effect your credit rating.

I would advise the Bank that there is a dispute on the account and that you wish it to be frozen. Then arrange to make regulat payments to pay off the overdraft over time with them. At least this way you are taking control and making sure the debt does not spiral and effect your credit rating.

Not the news you wanted to hear i'm sure, but when you open a joint account that can and does happen unfortunately.

[themas]

Look at a thread "Joint accounts after a split" started 11.1.06 for some more info.

Whatever you do with the bank, put it in writing and keep a copy.

If there is an ogreed overdraft limit on the account and your ex keeps within it then it should not affect your credit rating. The risk is that she goes over the limit. You are jointly and severally liable for the whole of the debt so the bank can chase you if she doesn't pay.

[stevie21]

khana - you recommend that one person freezes the acount against the wishes of the other? If it's a joint account then this would imply that one person has more control/rights than the other and this shouldn't be the case with a joint account.

If I were the bank I'd steer well clear of this and tell you to sort it out between you. See a lawyer if necessary.

[khana]

stevie21, the same way that either of the account holders can apply for credit on a joint account also ensures that either of them can apply for the joint account only to be frozen.

Its quite common for accounts to be frozen at the request of either of the parties - especially in marital disputes. This protects further debt to be run up unless it is agreed by all of the account holders.

The Bank is not taking sides, merely ensuring that they follow the wishes of a legitimate account holder.

[Dbeats01]

Contact the bank and inform them there is a dispute. And you wish for a inhibit to be placed on the a/c. This will stop and debits being made from that a/c. I might also stop credits from being paid into it as well. you can write a letter addressed to your bank instructing them to close the a/c but both parties have to sign this. This might be easier for you to get you ex just to sign her name at the bottom of the letter as appossed to her going into the branch. regular payments will have to be paid bank to the bank in order to prevent the bank from writing the a/c off as bad debt and selling the debt on to a debt collecting agency. In turn effecting your credit rating. All the best. dale