Benefits and Bank Charges
dcochrane
Posts: 1 Newbie
Can anyone tell me if banks can legally deduct bank charges of £30+ from government benefits which is the only source of an individual's income. Friend told me they can't as the goverment have said this is the lowest amount people can live on. Can anyone tell me what the position is?
Thanks,
David
Thanks,
David
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Comments
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NO they cant the SOCIAL SECURITY ADMINASTRATION ACT OF 1992 states that no one can take any money from anybody on benefits as thats what the goverment states that a person needs to live on0
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theres a thread on here somewhere about bank charges and benefits. anyone know where it is?There's someone in my head, but it's not me0
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it maY be worth contaacting the financial obsbumen, as there is a HARDSHIP ANGLE that can be used, and they can write to the bank as well.xx rip dad... we had our ups and downs but we’re always be family xx0
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It's a grey area, much like bank charges themselves, however my reading of it is that when you receive a payment of certain benefits (to my mind it's likely to be only Income Support and JSA(ib)), you should be able to receive the full amount of this money.
This does not mean that banks cannot apply charges, it just means they give you the full amount and your overdraft increases by the amount of the bank charge.
There is no way that social security legislation could preclude a bank from applying charges.
I believe however that DWP have recently published an internal faq that supports the banks taking the money.
It's perhaps an area that needs to be sorted, however I cannot see anyone wanting to see an outcome that stops charges, even welfare orgs might see this as not encouraging financial responsibility?0 -
When | spole to the financial obsbumen as I had 3 letters from Halxxxx saying that they were taking 2 sets of £30.00 charges with 1 days notice, as Im on benefits, I was tols that banks have the right to take the money and there is not a time break that they have to give you eg 14 days from letter, you have to argue the hardship angle, wich is a grey area.xx rip dad... we had our ups and downs but we’re always be family xx0
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I'm DWP, I'm not aware of any FAQ that says that, but then, one of these days that pile of virtual paperwork will topple over and flatten me
Not ideal, but I would suggest opening a 'bog standard' basic account with no overdraft/debit/cheque facilities at a different bank or building society, and getting your benefit paid directly into it. It won't make the overdraft disappear, but will at least ensure that your benefit benefits YOU and not the bloody banks.0 -
I had a d/debit at an early date the other day - and thought OH NO..but I found out as long as you pay in the cash to cover it on the same day its ok, they waver the charge. I admit it was only a £7 d/debit but it would have cost £38 in charges so from now on £10 goes into my emergency tin.....0
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Bank taking your Benefit? Quote this -
http://forums.moneysavingexpert.com/showthread.html?t=269424
peter9990 -
As mentioned in the other thread, if I was on means-tested benefits, then I would have reservations about drawing the bank's attention to it. The way I look at it is that if you need money in a hurry, but you can't get it from the mainstream lenders, then you enter into the scary world of pawnbrokers and payday loans, which really can be much more expensive in the long run.
I don't like losing my benefits if I can help it, but I've almost always been more worried about losing my mainstream lender credit lines. My credit dependency runs way way deeper than my benefit dependency.
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