Debt Questions

if a debt is in one persons name i.e; credit card and you have a joint account with that bank with your wife who is nothing to do with debt can bank still offset any monies owed to them and am i right in thinking they can only collect arrears owed not total amount outstanding? i am not in this situation but the thought just came to me so thought would ask the experts,thanks guys

Unfortunately Yes is the answer.

Though in practice they only offset the arrears, in the terms and conditions, once you have defaulted on an agreement, the small print states that they are within their right to demand full repayment of the full amount of the debt, and not just the arrears.

Tim

Unless it is written into the terms of the joint bank account they can do this (and not all joint accounts are run like this!) - theoretically they should not exercise offset from a joint account to pay a different account with them in one person's name. I have the reference for this somewhere.

We always advise people to open a new bank account anyway as some banks seem to do this and it is a bit late after the horse has bolted but technically they should not.

I shall be back with the reference!