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#1893537 - 02/04/14 07:46 PM Reg Z Overdraft LOC tied to DDA
TEL Offline
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Joined: Feb 2009
Posts: 160
10+ years ago, we opened a DDA to an individual who simultaneously applied for an overdraft LOC. DDA was opened and LOC approved and set up. An number of years later the individual got married, the deposit staff added the spouse to the DDA, but no changes were made to the LOC. I realize that this should have been dealt with at the time the spouse was added, but it wasn't.

Question - Can we ask the added spouse to sign the note (through modification), or ask them both sign a new note? Are there issues with applying jointly (since the spouse did not sign the original app)? Should one or both sign a new application? Other thoughts? Thanks.

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#1893684 - 02/05/14 02:18 PM Re: Reg Z Overdraft LOC tied to DDA TEL
RR Joker Offline
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RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
Read the contract and see under what circumstances you can make changes. I'm thinking the problem begins with allowing a spouse to be added to an existing account. The existing account was a 'single' account and now it's a 'multi-party' account. The single account should have been closed (also voiding the LOC tied specifically to it) and a new joint account opened. At that point a new LOC could have been requested.

Too often banks try to make things simple for a customer, or just simply don't understand the ramifications of simply adding (or removing) a party to/from an account.
Last edited by RR Joker; 02/05/14 02:19 PM.
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My opinion only. Not legal advice.

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#1893705 - 02/05/14 02:58 PM Re: Reg Z Overdraft LOC tied to DDA TEL
TEL Offline
100 Club
Joined: Feb 2009
Posts: 160
Thank you - my thoughts too - we should have dealt with it whenthe spouse was added. There is not a good fix at this point - but I thought I would check to see what you all had to say. Thanks for the input - it is always appreciated.

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