advice sought

[Bigmac versus]

I am trying to help a family member with overdrafts and charges accruing every day, there are so many issues here its going to be very difficult to get to the end of it but there are some things I need to say first.

 

This person has Bi Polar which is a mental illness and this leads to highs and lows, unfortunately the highs lead to spending on a mammoth scale, and here lies the problem.

 

Two accounts with BOS, one with an overdraft of £3200 which is maxed and the other which is a ultimate rewards account with an overdraft of £300 also maxed.

 

The couple are still getting salaries payed in to one account (individual concerned is getting sick pay salary) but the charges are swallowing up most of their salaries, the bank have said there is nothing they can do in respect of this person using the account but will pass to head office in regards of the charges to see if they could be returned (joint account) but this person is using the account and putting it over the overdraft at every opportunity and spending whatever is available. This person has also used salary advances and loans with the bank and other institutions. Doctors and cpn nurses cant help regarding the financial side of things and the bank is saying they cant remove their salaries from that account due to the overdrafts.

 

Their endowment mortgage had a shortfall of roughly £2,500 when it was due paid which was last year, they had been paying towards this shortfall and had got this down to roughly £700, this has not been paid since she illness worsened and it is now back at roughly £2500 due to interest being added.

 

 

This is really sad as this individual wouldnt spend a penny the wrong way before this illness, the partner works away and has been embarrassed with the stigma of mental illness and these growing financial worries.

 

When this illness is at its worst the person will buy anything and i mean anything, ( I had to stop her signing up to a house alarm system costing £3000 to a cold caller salesman last week)

 

 

Can anyone advise me on the following.

 

1. Is it too late to chase up the endowment shortfall.

 

2. This person took the Ultimate reward account whilst ill and is paying im told £12 per month, is there a way of having this returned.

 

3. I have advised both parties to open new accounts at another bank and have their salaries changed to it, I will deal with the BOS regarding the overdrafts but is there a way to stop them adding any additional interest.

 

 

Many many thanks for taking the time to read this and any advice given.

[MARTIN3030]

Good to see you back around.

I am going to flag this up for team thoughts.

[Bigmac versus]

Many thanks.

[BankFodder]

Start off with this

The Consumer Forums - Is your bank taking away your subsistence money?

 

Can't answer about the shortfall - I don't know enough about it.

 

On the rewards account, if you can get a medical saying that he suffered from a mental disability and was no competent to enter into a contract then you stand a good chance.

 

Has the entire situation been explained to the bank and what did they say about it

[Bigmac versus]

Yes whilst the bank sympathise there is nothing they can do as its a joint account, one cant remove the others access without their permission, cant even have the max amount to withdraw on a dailly basis reduced, just being as helpfull as they have always been. Thx for the link.

 

George

[BankFodder]

I wouldn't necessarily believe the bank about the position regarding the joint account. I wonder what the law or practice is on it.

 

It must be possible for one party to disassciate themselves from the contract. It wouldn't help historically but it owuld not be fair for a single party not to be able to terminate.

 

What that probably would do is to terminate the entire agreement.

 

Maybe that is where you should start. Close the account. See where that leads.

 

We can help you with the BOS problem.

[Bigmac versus]

Thanks Marc I have a letter ready for tomo and parachute accounts to be opened and take it from there.

 

Will update more tomo.

 

Thanks

 

George

[freethemice]

I am in the middle of trying to get an Halifax overdraft transfered to my sole name as my wife is a director and I do not want her credit rating or her position affected.

I have gone down the data protection route claiming that my wife never signed anything and all the spend was without her knowledge or permission.

After several letters they have sent a form for us both to complete to transfer this from a joint account to an account in my sole name. They do say they will not do this if the account is in arrears but if they don't a complaint to the information commissionaire will follow.

Anyway they do have a form so it may be worth chasing.