Call for more care setting up joint accounts

Call for more care setting up joint accounts

The Banking Ombudsman Scheme is urging people setting up shared accounts to think carefully about how they allow users to operate such accounts after continuing to see a steady stream of complaints about “account mandates”.

Banking Ombudsman Nicola Sladden said her call was particularly directed at companies, trusts, partnerships and charities where a handful of individuals might operate a single account.

She said it was vital intending account-holders established in their minds whether they wanted authorised signatories to be able to act alone, or only together.

“Account mandates tell banks who can use an account, but also how those individuals can use it. Selecting the right wording makes all the difference to the ‘how’ because banks are obliged to act exactly as directed.

“Allowing ‘any’ or ‘either’ authorised signatory to operate an account (or operate it ‘severally’) will mean one person can do so on his or her own.

“Specifying ‘joint’, ‘both’, ‘all’ or ‘any two’ authorised signatures will mean no one on his or her own can withdraw or transfer funds.”

Ms Sladden said thinking through the details at the start could avoid costly trouble down the track, such as misuse of funds by someone authorised to act alone. It could also avoid the complication of amending access later on – something that might require getting the permission of every signatory.

She said the scheme had published a Quick Guide to Account mandates its website, along with cases it had handled about mandate disputes.

Its Quick Guide to joint accounts and relationship breakdowns has further information about joint accounts.

The scheme acts independently in hearing complaints for free from bank customers.

ENDS

© Scoop Media