moving money

[west ham fan]

Hi last year I got into finacial hardship and turned to national debt line they helped me to arrange my finances, I pay a set amount to my debters 1 of which is the Lloyds TSB personal loan. 18 months ago my daughter set up an account in joint names (hers and mine) with the said bank to which she pays in various amounts to the account so as I can go to Australia to see her and my son later this year she had paid in a total of £650.00, today I logged onto internet banking, I couldnot believe what I saw the bank had removed £570.00 from that account and took it off the personal loan bill. My question is can they do this as it is in joint names and that they have agreed to a set amount of repayments from me, thankyou WHF, happy 2011

[boxtops]

It sounds a bit odd but it may be that the bank has powers to take any money in your name (even though it's joint) as part of the debt arrangements. You need to get down and see them on Tuesday when they reopen, and ask them to explain what's happened. Is the joint account also with Lloyds?

[Andyvon]

Probably WHF.

I'm 48 now and I've got no money problems but I got in a terrible mess many years ago in my late teens and early twenties - CCJs, bailiffs on my Mum's door etc. I found the banks can do anything they liked. At the end of the day, they feel you've spent their money that you weren't entitled to take so they can take whatever they like from you to recover that money. That's what was explained to me many years ago and I shouldn't think they've changed.

I hope you keep your *** up WHF. I couldn't see an end to my problems but things did get better. The help the bank are offering you will get you straight. As I said, I'm 48 and I was eventually successful in business but I learned years in those years to live in a cash world and I still do. I only buy things with cash and I only keep cards for an emergency (although I have to use them now to buy on-line).

Good luck. Although you might think there's no end, things will eventually get better for you.

[Andyvon]

It seems AB has removed a word from my post. It wasn't rude or anything. I used the term beginning with 'p' to mean 'keep your chin up'.

[factor-fiction]

Yes, you need to check with the bank, but I am pretty certain that they have the right to do this- it is common practice. With hindsight it would have been better not to include the name on your account- if it is all her money in there it would have been better to keep the account in your name and then just sort out the payment for the Australia trip when it's needed. I realise it's too late for that now but maybe she should take your name off that account so they can't take any more. You could even try arguing that the joint account was only 50% yours and ask them to repay your sister her share.
On the positive side- it has reduced the amount you owe

[buildersmate]

A joint account does not mean that the funds in there are automatically 50% owned by each of two account names.
By all means try what F30 suggests, but I think you are going to find that it is part of the T&Cs of the bank that they can aggregate the resources in order to pay off debts from another account.

[factor-fiction]

I've just reread my post and realised I made crucial typing error. I meant to say that with hindsight it would have been better to have kept the Australia Trip fund in HER name only

[bednobs]

yes, as the others have said i think it's very likely they can do this

[west ham fan]

thanks every body for your help

[twix123]

If it is a 'Joint & Several' account, with either of you to sign then any balance can be assumed to belong to either of you, therefore they would have been within their rights to apply funds towards your debt towards the bank. Your daughter should have opened the account with a different bank where there would have been no connection with your indebtedness to Lloyds TSB.

[sandmaster]

For two accounts to be set off they must meet two conditions: firstly the debt must be due. So if there is an agreement for it to be repaid over a period then it may be argued it is not due. Secondly both accounts must be in the same name and right. In this case the debt is in sole name and the credit balance in joint names so this condition is not met. Today bank staff are not trained in banking law and will do very much as they please as long as they can get away with it. Write to the bank giving them the facts and asking for the credit balance to be restored and the agreement for repayment of the loan to be honoured, giving notice of court action if they fail to do so. If they ignore you you coud apply to the county court for judgement. I suspect the bank will ignore all this. If they do and you obtain judgement and they still ignore you, apply for a bailiff to enter a bank branch to remove property to the extent of the debt. This will undoubtedly get resuts. In the long run if you do nothing you have not lost out as your debt has been reduced.