benefits and bank charges

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rini
rini Posts: 22 Forumite
in Budgeting & bank accounts
Dear all

I am temporarily on JSA but the bank is swallowing up these sums with charges. What can I do?
Also, I am hearing mixed reviews about requesting charges back because of hardship. Can anyone shed any light on the matter?

Thanks for your help

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  • cifpower
    cifpower Posts: 6,502 Forumite
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    Open up a 2nd basic account into which your benefits can be paid or ask to be paid by giro
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
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    rini wrote: »
    Dear all

    I am temporarily on JSA but the bank is swallowing up these sums with charges. What can I do?
    Also, I am hearing mixed reviews about requesting charges back because of hardship. Can anyone shed any light on the matter?

    Thanks for your help
    You can ask the bank ONCE for the right of appropriation. You must do this BEFORE the benefits are received in the account. They will only do this once - ask again and they will close your account.
  • natweststaffmember
    natweststaffmember Posts: 12,063 Forumite
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    jonesMUFCforever wrote: »
    You can ask the bank ONCE for the right of appropriation. You must do this BEFORE the benefits are received in the account. They will only do this once - ask again and they will close your account.
    Can you explain this a bit more and why is it only once and where in a banks terms and conditions does it say that?

    Apologies for the number of questions but this is an interesting response.
    I have not worked for NatWest Bank since February 2009

    This username is no longer active.
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
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    Banks do not have to let customers keep any credit whether salary or benefit if they are overdrawn.
    If you are overdrawn money comes in overdraft is repaid or reduced etc.

    Apparently there is a legal loophole which means that if customers ask for their money (benefits) to be appropriated say to pay a certain bill (eg rent) then the bank has to do this.
    As you can imagine if this was widespread it would cause mayhem so as far as LTSB is concerned it can be done once. The bank will agree to it but tell the customer that if they ask again they will be given notice to close the account.
  • davethorp
    davethorp Posts: 1,577 Forumite
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    cifpower wrote: »
    Open up a 2nd basic account into which your benefits can be paid or ask to be paid by giro

    If you cant get another account contact the jobcentre and explain the situation and they should refer you for a post office account. Very rare they will pay by giro these days least not on a permanent basis

    The other posts about the right of appropriation are also correct though as another user mentions some banks dont like people asserting their legal rights. Odd that!
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
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    davethorp wrote: »
    If you cant get another account contact the jobcentre and explain the situation and they should refer you for a post office account. Very rare they will pay by giro these days least not on a permanent basis

    The other posts about the right of appropriation are also correct though as another user mentions some banks dont like people asserting their legal rights. Odd that!
    What about the right of a bank to ask its customers to return money they have borrowed?
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