Reminder to sever your banking ties if love fails

Valentine’s Day reminder to sever your banking ties if love fails

Your finances as well as your heart can be broken if you don’t update your banking arrangements after a relationship breakdown, says Banking Ombudsman Nicola Sladden.

“We often get complaints from people caught out by not updating their banking arrangements to reflect their new situation after a relationship breakdown.

“In one case, a man complained to us after a loan application was declined because he had a bad credit rating stemming from a credit card and debt he claimed he knew nothing about.

“It turns out he had applied for the joint credit card with his ex-wife years before, but had not got a card himself so had forgotten all about it. His ex got into serious financial problems after they split and the bank wanted him to pay.

“He understood he was liable for the debt, but the reality is that if he had arranged for the joint account to be closed when he separated, he only would have been liable for the debt on the card at that time,” Ms Sladden said.

Having a joint account as a couple means that each account holder is entitled to all the funds and each is liable for all the debt on the account, and unless a bank is given notice to the contrary, it will continue to allow any joint account holder to operate the joint account.

If a bank becomes aware of a relationship dispute, its role is to protect the funds while the problems are being worked through.

Ms Sladden also warned people looking for romance also need to be wary – of scammers – as the scheme continues to receive complaints each year from people who have been duped out of their money by fraudsters.

For more information, see our quick guides on Joint accounts and relationship breakdowns and Common scams targeting bank customers andLooking after your credit and debit cards and PINs.

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