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PPI Claim News - 10/5/2011

 
Loan protection: Joint accounts 'can have legal dangers'

Couples that have taken out loan protection, perhaps after buying their first property together, may be considering setting up a joint account.

However, they should be aware that these sorts of accounts can have legal dangers.

That is according to Annie Shaw, editor of CashQuestions.com, a unique website that allows members of the public to ask a question about personal finance and have it answered free of charge by an expert.

She said: "People can be jointly liable for the account if it runs into [its] overdraft, or if there are obligations such as direct debits or anything set up in association with that account.

"[If] one of the partners of the account stops paying into it, the other person is then legally liable for what is going on in the account."

Her comments follow research by first direct, which revealed that 58 per cent of couples that moved in together did not set up a joint account for household finances.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.
 ADNFCR-2776-ID-800526564-ADNFCR



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