Removal from joint bank account without signature

[Lordgreystoke]

What is the name of your state?Alabama
I have a friend(No, really!) that has since become my girlfriend that I am trying to get some help for.
She and her ex husband had a business together that they ran out of the bottom of their home. They decided to split up and originally she was going to run the business and buy him out. He broke back into the home when she was away, so at that point since it was his home too she left and stayed with her mother. She then planned to have him buy her out.
After she left he started trying to have her removed from the bank accounts. The bank informed him(her mother was with him for this) that in order to remove my friend from the business and personal accounts he would have to have her sign off on it. She never did. About a week or 2 later when she went to check on the accounts they informed her that she no longer had access to the accounts. The bank told her that because she had not signed and returned the signature cards they had automatically removed her.
As I recall, she and her mother were authorized on the accounts and when they decided to let him buy her out her mother went down to the bank with him to allow him back on to the account.
So the question is, How can an owner of a bank account be removed from the account if they never sign off on it?
Also, as this eventually resulted in some direct and indirect economic hardships, can she seek restitution from the bank and would punitive damages be in order. This same bank is suing her currently for $3000 in small claims court for a $5000 credit line secured against one of their business properties. Her ex has since run the business partnership into the ground, let all their property sink into forclosure or near it, then declared personal bankruptcy and essentially abandoned the property and moved to another state to take a job. As she didnt have access to the accounts it made it much harder for her to monitor business actvity as she had moved to another state for a time in order to work.
It's rather complex, even more so than I've laid out here and she does have an attorney... 2 actually. But both have been not totally accessible as one has had health problems and the most recent one seems to be spending a lot of time driving to take care of his sick father.. SO... since she cant seem to get advice from her paid counsul in a timely fashion I am trying here.
Once again the actual question is with regards to the bank removing her from her joint bank accounts without her permission. Was it legal for them to do so and does she have grounds to seek damages from them? This happened back in January of 2005 by the way.

[Veronica1228]

Originally Posted by Lordgreystoke

What is the name of your state?Alabama
I have a friend(No, really!) that has since become my girlfriend that I am trying to get some help for.
She and her ex husband had a business together that they ran out of the bottom of their home. They decided to split up and originally she was going to run the business and buy him out. He broke back into the home when she was away, so at that point since it was his home too she left and stayed with her mother. She then planned to have him buy her out.
After she left he started trying to have her removed from the bank accounts. The bank informed him(her mother was with him for this) that in order to remove my friend from the business and personal accounts he would have to have her sign off on it. She never did. About a week or 2 later when she went to check on the accounts they informed her that she no longer had access to the accounts. The bank told her that because she had not signed and returned the signature cards they had automatically removed her.
As I recall, she and her mother were authorized on the accounts and when they decided to let him buy her out her mother went down to the bank with him to allow him back on to the account.
So the question is, How can an owner of a bank account be removed from the account if they never sign off on it?
Also, as this eventually resulted in some direct and indirect economic hardships, can she seek restitution from the bank and would punitive damages be in order. This same bank is suing her currently for $3000 in small claims court for a $5000 credit line secured against one of their business properties. Her ex has since run the business partnership into the ground, let all their property sink into forclosure or near it, then declared personal bankruptcy and essentially abandoned the property and moved to another state to take a job. As she didnt have access to the accounts it made it much harder for her to monitor business actvity as she had moved to another state for a time in order to work.
It's rather complex, even more so than I've laid out here and she does have an attorney... 2 actually. But both have been not totally accessible as one has had health problems and the most recent one seems to be spending a lot of time driving to take care of his sick father.. SO... since she cant seem to get advice from her paid counsul in a timely fashion I am trying here.
Once again the actual question is with regards to the bank removing her from her joint bank accounts without her permission. Was it legal for them to do so and does she have grounds to seek damages from them? This happened back in January of 2005 by the way.

Are you sure you have your facts straight? As far as I know on personal accounts the only way you can remove a name is to close out the account and then the ex can open a new one in his name only.

As for the business account, how is the business organized? What kind of business is it? This might not matter, but for the most part all the bank needed was to give the ex new sig cards and have him fill them out excluding your friend as a signer. This is perfectly legal and okay to do under most circumstances. If the business is a sole prop. under the wife's name, then there might be a different answer, but that's why it might be important to clarify how the business account was set up. Officers, owners, etc.

[Lordgreystoke]

The business was a partnership. He had her removed from ALL of their accounts. Business and personal. Hence my assertion that the bank did something VERY VERY wrong.
I was even thinking..maybe she should call the FBI cause something isn't right here.

[Veronica1228]

Originally Posted by Lordgreystoke

The business was a partnership. He had her removed from ALL of their accounts. Business and personal. Hence my assertion that the bank did something VERY VERY wrong.
I was even thinking..maybe she should call the FBI cause something isn't right here.

I really don't think that the bank has done anything wrong, but I'd have to see the company's formation docs to be certain. Basically, if they have a partnership, either one can change the signers on the account unless they have some kind of legal document stating otherwise. The personal accounts he definitely had the right to do what he did. I still maintain that they didn't remove her name from the account. The bank should have closed the joint account and opened a new one in the ex's name only.

Personally, I don't think you have any kind of case against the bank, but we'll wait and see if anyone else pipes in here.

[Lordgreystoke]

Veronica, instead of telling me I am mistaken about what happened and then telling me there is no case, could you maybe answer the question I asked. WHAT would happen if the bank removed her from the accounts without her signing off? I am well aware that either person could close the accounts in both cases be it the personal or the business account because that is what my friend did when she was going to take over the business. This is NOT what happened in this case. When she questioned the bank about her removal they gave her some song and dance about she never signed the new signature card and so she was automatically removed. Actually, the initial response was that it should not have been able to be done, then they came back with the didn't sign the new card reason. I personally think this was the CYA response in hopes that it would just go away.
Apparently, what this bank has done is such a tremendous breech of their fiduciary responsibility that you can't even wrap your mind around it well enough to answer the actual question I asked.

[Veronica1228]

Originally Posted by Lordgreystoke

Veronica, instead of telling me I am mistaken about what happened and then telling me there is no case, could you maybe answer the question I asked. WHAT would happen if the bank removed her from the accounts without her signing off? I am well aware that either person could close the accounts in both cases be it the personal or the business account because that is what my friend did when she was going to take over the business. This is NOT what happened in this case. When she questioned the bank about her removal they gave her some song and dance about she never signed the new signature card and so she was automatically removed. Actually, the initial response was that it should not have been able to be done, then they came back with the didn't sign the new card reason. I personally think this was the CYA response in hopes that it would just go away.
Apparently, what this bank has done is such a tremendous breech of their fiduciary responsibility that you can't even wrap your mind around it well enough to answer the actual question I asked.

Your question cannot be answered because in my opinion the bank has done nothing wrong. I don't know how many times I have to repeat myself.