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Overdraft Protection on a Joint Account

Answered by: 
Andy Zavoina | CRCM

Question: 
I have a husband who has applied for overdraft protection on his checking account which both he and his wife are joint owners of. He is applying in his own name and qualifies for it as individual credit. Can I require that his spouse (or mother or other joint owner of the account) be contractually liable on this overdraft protection loan account also?
Answer: 

Overdraft protection should be conditioned on the fact that a joint deposit account requires a joint application. Otherwise, the fact that it is joint loses all meaning when one person overdraws and the other claims no liability. If the spouse doesn't want to be on the overdraft authorization, the other party needs a separate account.

First published on BankersOnline.com 1/7/02

First published on 01/07/2002

Filed under: 
Compliance
Filed under compliance as: 
IT
Overdraft Protection

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