UK banks and financial
firms are failing customers who need to safeguard their joint finances when
relationships break down, according to a survey by SavvyWoman.co.uk, a money
website for women.

The research found that banks’ procedures can
be inconsistent and unhelpful, and that staff don’t always abide by clear
policies when dealing with joint finances after a customer’s relationship fails.

Sarah Pennels, founder of SavvyWoman.co.uk, said
that women had contacted the website after former partners had forged
signatures and otherwise abused their trust by borrowing larger mortgages or
taking out entire savings accounts. In one woman’s case, the ex-husband had
withdrawn £1.6 million ($2.4 million) from a joint savings account.

The lack of information and dispute-resolution
on joint finances pertains mainly to the retail banking sector, but Pennels told WealthBriefing that some reported
cases indicated that the same issues exist within the asset management industry
and pension funds, where couples have made joint investments.

As in many other cases, the woman was not
aware that when consumers sign up for a joint account, both parties are equally
liable for any debt on the account, regardless of who ran up the debt. 

“However, this is often not explained clearly
and may be hidden in the bank’s terms and conditions.  When couples tell their bank they are in
dispute and there is a joint account, banks should take reasonable steps to set
up a facility so both partners have to agree to transactions, or to freeze the
account as soon as possible,” Pennels said.

The findings are supported by the Financial
Ombudsman Service, which also saw a continual increase in the number of enquiries
about joint accounts and loans where a relationship breakdown had been a
factor.

The gratis complaints service found that banks
have been inconsistent when divesting information on joint accounts, and when
dealing with disputes in conjunction with these.

Pennels added: “I am contacted regularly by
women who are in debt due to joint accounts or mortgages, so it is clearly an
issue and one the banks need to address. This can be done by making sure both
partners have to agree to any extra spending or offering to freeze the account.”