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#2018311 - 06/04/15 02:05 PM
Terminating debit card - How would you handle this
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Junior Member
Joined: May 2011
Posts: 34
Kansas
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Husband and wife have a joint account. Wife calls in late in the day and wants to close husband's debit card so he can't withdraw her paycheck that is set to be direct deposited that night. She says he is getting out of jail. Would you close the debit card? There is only $2 in the account at the time, but her direct deposit should memo post and be available for withdrawal sometime in the middle of the night.
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#2018315 - 06/04/15 02:17 PM
Re: How would you handle this??
amberleigh
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Diamond Poster
Joined: May 2011
Posts: 1,410
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Under your senario, I would have the wife close the account and establish a new account. The new account with be an individual account.
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#2018320 - 06/04/15 02:22 PM
Re: How would you handle this??
amberleigh
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Junior Member
Joined: May 2011
Posts: 34
Kansas
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She was advised to do that a week ago and never did it. When she called yesterday to make the request, she was told she could come through the drive through to close the account and could open a new account in her own name the next day and we would re-route the deposit to her new account. She didn't do that either. Husband withdrew all the funds at 4:00am. Her solution was to just close his card which I felt put the bank in the middle of their domestic dispute especially since she saw this coming for a week and chose not to handle it herself. I just wasn't sure about closing a card for someone at the request of another joint owner....
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#2018375 - 06/04/15 03:22 PM
Re: How would you handle this??
amberleigh
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10K Club
Joined: Jul 2001
Posts: 84,368
Galveston, TX
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Why in the world did you not just immediately cancel all debit cards, close the account and mail her a check??
I think the bank is liable for failure to act on the customer request. This is not a his card - her card issue. You received a legitimate request from a joint account holder on an account on which they are both jointly and severely liable.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#2018418 - 06/04/15 04:32 PM
Re: How would you handle this??
amberleigh
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Junior Member
Joined: May 2011
Posts: 34
Kansas
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I guess the bank should have made the decision to close the account ourselves even though she was told she could close the account which would prevent him from withdrawing the money. Since she didn't want the account closed and wanted to leave it open for whatever reason we didn't think she could request for his card to be closed without the account being closed as well. If I'm understanding you correctly, any joint owner can close another joint owner's card at any time?
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#2018419 - 06/04/15 04:34 PM
Re: How would you handle this??
amberleigh
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Power Poster
Joined: Nov 2001
Posts: 6,719
PA
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I think the bank is liable for failure to act on the customer request. This is not a his card - her card issue. You received a legitimate request from a joint account holder on an account on which they are both jointly and severely liable. Are you suggesting that any owner of a joint account should have the right to cancel another owner's card simply because they don't want the joint owner to have access to the account? I'm sorry- I simply do not agree with this.
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#2018440 - 06/04/15 04:58 PM
Re: How would you handle this??
amberleigh
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Power Poster
Joined: Oct 2009
Posts: 3,927
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I think Randy brings up a good point. As far as I understand, he is not saying that a joint owner has the right to cancel another joint owner's card. He is simply stating that given the goal that the woman had in mind, he outlined a reasonable, and perhaps the best course of action given the circumstances. This is a legitimate case of going that one extra step for a customer.
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I hear and I forget. I see and I remember. I do and I understand.--Confucius
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#2018444 - 06/04/15 05:02 PM
Re: How would you handle this??
amberleigh
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Junior Member
Joined: May 2011
Posts: 34
Kansas
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But she didn't want the account closed at that point, she just wanted his card closed. Had she said she was out of town and couldn't come in to close it herself or something, then we could have closed the account per her request (even though we normally require a signature).
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#2018882 - 06/07/15 03:20 AM
Re: How would you handle this??
amberleigh
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10K Club
Joined: Jul 2001
Posts: 84,368
Galveston, TX
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I would highly suggest that you all go back and read your account agreements. These are not his and her cards and any instruction from a joint account holder is binding on both of them and for the bank to ignore the request to cancel the card for any reason is a breach of contract. The bank is liable for not acting on her instructions. If she chose to not close the account and he wiped it out some other way __ well so be it. However the bank was properly notified of the request.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#2018897 - 06/08/15 12:02 PM
Re: How would you handle this??
amberleigh
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10K Club
Joined: Jul 2001
Posts: 84,368
Galveston, TX
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Well, when the poor woman stands in front of the judge and say I told the bank to cancel the card and they refused and a few hours later my deadbeat husband wiped out my paycheck/account and therefor I didn't have the rent money to keep a roof over my head, we will see who was injured.
The point being, the bank screwed by not canceling the card.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#2018908 - 06/08/15 12:54 PM
Re: How would you handle this??
amberleigh
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10K Club
Joined: Jul 2001
Posts: 84,368
Galveston, TX
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I am sure your depositor's agreement states the following, if it doesn't then you have a defective depositor's agreement:
"Each co-owner acts as the agent of each other co-owner. Each co-owner authorizes each other co-owner to operate the account without the consent or approval of any other co-owner."
So you are saying that the failure of the bank to act on the instructions of one party is not a breach of contract???
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#2019010 - 06/08/15 04:17 PM
Re: How would you handle this??
amberleigh
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10K Club
Joined: Jul 2001
Posts: 84,368
Galveston, TX
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You are reading it the opposite of what it means. It means that one person of the joint owners can do anything they want with the account, including canceling cards, stopping the payment of checks, etc. I am not saying that she can limit his access as long as the account is open, but canceling debits cards for any reason she chooses - you bet. Again, these are not his and her cards (even if they have their names printed on them). The cards belong to the account holders jointly and either party has the power to request a new card or cancel an existing card at any time for any reason.
Using your logic, she could not place a stop payment on a check because he wrote it.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#2019054 - 06/08/15 05:49 PM
Re: How would you handle this??
amberleigh
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10K Club
Joined: Jul 2001
Posts: 84,368
Galveston, TX
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Well, I didn't copy the whole agreement that I pulled that from. Like I said, you need to read your own agreements. Failure to act on the express wishes of one party because the bank thinks it might harm the other joint accountholder is a misnomer. The Bank holds no such reasonability what the actions of a joint account holder has on the other party. Many deposit agreements even include this clause:
" Each joint owner may close the account, enter into special agreements regarding the account, add or remove any signatory or other joint owner to or from the account and stop payment on any check or draft drawn on the account without the signature of the other joint owner(s)."
So you are saying because this does not specifically mention a debit card the joint account holder had no right to request that the card be cancelled?
You and I are of course both arguing in the blind as we have no idea what their agreements say.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#2019946 - 06/11/15 06:58 PM
Re: How would you handle this??
amberleigh
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Gold Star
Joined: Nov 2011
Posts: 402
USA
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I have really enjoyed reading your discussion. Now I'm going to go read my account agreement - I've been inspired.
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#2024660 - 07/02/15 01:06 PM
Re: How would you handle this??
amberleigh
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10K Club
Joined: Oct 2000
Posts: 27,763
On the Net
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Getting into this late, but my banks agreement was in line with Randy's comments and I'd bet the agreement and perhaps the back of your card says it is the property OF THE BANK and the bank can cancel it at will.
This is a bank version of McDonalds hot coffee. We told you, we printed it on the cup, you spilled it, here is a check and we'll settle. We're sorry you were dumb and now we will pay.
The bank could cancel his card without liability. The bank could have closed the account at her request or with notice. I don't see the bank closing it instantly at the bank's will in this scenario and she had every opportunity. Similarly the bank shouldn't have liability now as jointly owned funds were taken from the account by an owner. But a jury of her peers would penalize the bank, in my experience.
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AndyZ CRCM My opinions are not necessarily my employers. R+R-R=R+R Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell
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#2024936 - 07/03/15 12:07 PM
Re: How would you handle this??
amberleigh
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10K Club
Joined: Jul 2001
Posts: 84,368
Galveston, TX
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Why assume anything when we all know that it will not happen?? Putting the bank in the middle of an on-going domestic dispute is not wise. If the card or cards were requested to be cancelled, they are done with cards. If they want a new card, go down the road. A debit card is a privilege not a right.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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