Taking O/D money to pay business O/D

[Kane33]

I had a partnership business account that owed repayments for a loan. The account Manager decided to pay all loan payments putting the business account O/D even though we had not got an O/D. They then took £600 odd from my overdraft on a personal joint account with my wife, she was not my partner in business. I have read that under collection rules they should not ask to or place you in further debt to make a payment. Does this rule apply to business accounts and if so can you advise which claim route to take. I think I should Subject Access Request the business account and claim after that however not sure what to refer to for the claim. Thank you for taking the time to read and trying to help.

[Kane33]

Any ideas, anyone !

[Kane33]

Can a Moderator point me in the right direction please.

[Karnevil]

did the bank just offset the amounts from your other accounts to pay the debt ? or was it mismanaged by your business account manager ?

single to joint and personal to business offsetting doesnt seem right to me...there are some useful articles I will grab for you later on.

[MARTIN3030]

This is an interesting one,and one which I am currently dealing with myself.
In my own case it was Barclays.
I am aware that they are monitoring this site so dont want to say too much.
They do state in the terms and conditions the following;

3(g) The Borrower shall be liable for (and the bank may debit any account of the borrower with) any costs incurred by the bank in taking any steps to obtain payment of monies due under this agreement.
5.Joint borrowers; if the "Borrower" comprises more than one person the liabilities of such persons shall be joint and several and reference to "the borrower" include all or one of them as appropriate.

These terms and conditions come from 1999.
Business bank loans fall within the remit of the 1974 consumer credit act as ammended.

Lots of contracts in the late 90s were seriously flawed.

I am challenging certain issues with mine too,and one such point where I can show that my main account was also raided to maintain the loan repayments.Penalty charges accrued on that and therefore put it way overdrawn.This was closed therefore making payment of the loan difficult.
I intend to show that my business bank manager was negligent in his management of the account by taking his commissionn charges every month and putting the account OD and so triggering the loan to be unpaid in the other account.
As regards taking money from your wifes account I do not see how they are legally entitled to do that.
Clarification on both points here should not be too difficult I will come back to you on these.

[Kane33]

Thanks for looking at this. For clarification it is a joint account that had a £1,500 overdraft we was £900 in to it and they took the over £600. If I have read articles on this site right then they are not allowed to put you further in debt to clear a debt you cant already maintain. Any thoughts on that please ?

[Kane33]

Karnevil, did you manage to find those links you mentioned ?