Bank Question - can a bank take loan payment from a joint bank account without permission?

[BanksAreHoles]

If the loan is in a different name?

Let me explain.

Scumifax removed by overdraft facility with two weeks notice just as maternity leave ended, and with my DH out of work (made redundant). I had £800 overdraft, and always lived within/up to this, have done for years. Then, they removed it, to zero, instantly, not gradually, but bam done. I made a payment plan with them to reduce this from DH and my joint account to save the risk of them taking the whole lot from my wages/tax credits which I had changed as soon as I got the letter telling me this - they said they were allowed to do this between bank accounts and so did terms and conditions of joint bank account.

Alongside this I have had a £10k loan coming out of that individual bank account, from my student days at a rate of £190 per month, and have £700 left to pay off. I stopped paying, well, let me be truthful here - i could not be bothered to set it up again to come from joint bank account as they had pissed me off/taken away my bank account for no good reason. They could wait for their money. Which was a bit silly as I only had 4 more months left to pay!

I now have received a default notice on the loan account which also said they will potentially take the money from another account held with them. They also said they will terminate the agreement on x date (passed) if no payment received. I called them, offered a payment plan, they refused unless i give them a full breakdown of my income/expenditure (which tbh they have already!) which I am not prepared to do.

My long winded question is - can they deduct the outstanding balance from my joint bank account if a) the loan is in a different name (maiden name) to the joint account and b) the agreement has been terminated and c) is the loan a 'bank account' and can they freely access my other bank accounts?

(I have no issue paying them, always intended to pay them, just when i can afford it, not dictated to by them, I have had my overdraft for years and years, and they took it from me at the worst possible time in my life).

£500 and something. I will give that a try. Thanks honeydragon for being honest and non-judgmental and realistic about what might happen.

Thanks everyone else too

I feel a bit calmer right now. I should not panic too much as I only have £5 in our account anyway, no more til next week! (we have everything we need, food, fuel, internet )

No worries Good luck. I'll keep an eye out in case you need to rant some more

Sorry if I sounded a bit judgemental - but your OP was a bit " bastard bank" and "I can't be arsed". I know they do these things at the worst possible moment - I have had that too! But you need to get in there and sort it with them. They are not in the wrong really.

Portofino you didnt sound judgemental to me

And I so agree with a lack of contact with your bank! At least then you could sort things before they got to this stage and lending was tailored to what you needed not what was on special offer.