Can Banks take Benefits

[pooky2483]

Are Banks allowed to take benefits in charges?
I have just got off the phone to my local Benefits Office and they confirm they are not allowed to touch Housing benefit but are unsure about the rest. I remember seeing some documentation somewhere on here but can't remember where.

[Spent2much]

Re: Can Banks take Benefits

tsb took my son's benefit money for bank charges, they also doubled the charges because he was unemployed .

[pooky2483]

Re: Can Banks take Benefits

That's absolutely outrageous. we need to fight this as fiercely as we can.
The Benefits the Government give us are for us to live on, not feed the fat cat Banks.

[Spent2much]

Re: Can Banks take Benefits

i know why double though when its obvious jsa is not enough to live on anyway i was livid.
His motor insurance was double also because he was unemployed ,at that time we told him to phone again a different company and not say he was unemployed it worked, but its stupid he had to lie .

[vint1954]

Re: Can Banks take Benefits

Act of Parliament which over-rides this if you are in receipt of any of the following benefits.
• Income Support
• Tax Credits
• Child Benefit
• Job seekers allowance
• Incapacity benefit
• Disability living allowance
• Attendance Allowance
• CSA payments
• Other DWP payments.
These social security benefits are granted to stop hardship and are designed to meet basic day to day needs, and are exempt and are protected under the Social Security Administration Act 1992 sub section 187. from arrestment in terms of section 187 of the Social Security Administration Act 1992 (see Enforcement of Civil Obligations in Scotland, Scottish Executive report, at paragraph 5.245). Section 45 of the Tax Credits Act 2002 is an identical provision to the said section 187 of the 1992 Act.
This stipulates that the bank can not apply any charges to money received as benefit, and any such charges are unlawful and therefore disallowed.

You may however need to send a letter of appropriation to explain to the bank what the benefits are there for.

You may also want to look at a new bank account.

[alangee]

Re: Can Banks take Benefits

• Other DWP payments.

Vint, does that include your pension?

Alan

[vint1954]

Re: Can Banks take Benefits

Vint, does that include your pension?

Alan

Indeed, I beleive so.

[vint1954]

Re: Can Banks take Benefits

Social Security Administration Act 1992

[pooky2483]

Re: Can Banks take Benefits

You may however need to send a letter of appropriation to explain to the bank what the benefits are there for.

You may also want to look at a new bank account.

I sent one of those a couple of months ago to my branch but didnt get a reply, not even after sending a further letter requesting acknowledgement of the receipt of the LOA. I got nothing back, I even think I sent a further letter asking for a reply, still got nothing.

I am in the process of compiling a letter to them ans will be stating the above and telling them that I want all previous charges refunded too or I will be taking it further.

[pooky2483]

Re: Can Banks take Benefits

Does it also apply to wages as I remember somewhere that they can't take any of that in charges either?

[vint1954]

Re: Can Banks take Benefits

I sent one of those a couple of months ago to my branch but didnt get a reply, not even after sending a further letter requesting acknowledgement of the receipt of the LOA. I got nothing back, I even think I sent a further letter asking for a reply, still got nothing.

I am in the process of compiling a letter to them ans will be stating the above and telling them that I want all previous charges refunded too or I will be taking it further.

Then the answer may be to change Banks.

[vint1954]

Re: Can Banks take Benefits

Does it also apply to wages as I remember somewhere that they can't take any of that in charges either?

No, I think wages do not come into it.

[Miss Molly]

Re: Can Banks take Benefits

I understood that you had to provide the bank with a list of the priority payments that needed to be covered by the deposits ?

I also understood that they couldnt take their charges if they were to take you into an unauthorised overdraft situation ?

[pooky2483]

Re: Can Banks take Benefits

I understood that you had to provide the bank with a list of the priority payments that needed to be covered by the deposits ?

I also understood that they couldnt take their charges if they were to take you into an unauthorised overdraft situation ?

In Dec 2009 the A&L bounced my DD to MBNA because it would exceed the arranged O/D facility. They charged £25 for the privilege which put the account over the O/D limit.

Looking at SAR, in 2006 they let it go well over the arranged O/D instead of bouncing the payments but also charged £25 unauthorized O/D fee pushing it further into unauthorized O/D.

I didn't know anything about this back then. I was on benefits in 2009, it was clearly shown on the statements. They still took their charges.

LOL... is this a case of thread hi-jacking I don't mind, were helping each other

I sent them the LOA with IE enclosed and didn’t get a peep out of them so the boots are gonna stomp all over them now.

[Never-In-Doubt]

Re: Can Banks take Benefits

I understood that you had to provide the bank with a list of the priority payments that needed to be covered by the deposits ?

I also understood that they couldnt take their charges if they were to take you into an unauthorised overdraft situation ?

They do need to adhere to your request but a letter of appropriation must first be sent. If you cannot list what the monies will be used for, then you can use a blanket version as this post here: --> allaboutFORUMS - View Single Post - Santander ignoring me