help!tax credits have paid my ctc into an overdrawn account

taylorsmum · 22 November 2006 at 11:22AM

can any one advise me on what to do . my partner phoned up the tax credits on friday, to give them my bank account details for my ctc credits to go into, as our joint account is overdrawn, we are currently on jsa ib. checked our joint account today the stupid people have paid it into there, is there anyway of me getting back the money, we do not get our jsa money until tommorow and need to buy food

Miss_Money · 22 November 2006 at 12:18PM

go to your bank and explain what happend. I think you will find that the bank will let you have your benefit money as they are not alowed to not let you have it.
this happend to me with natwest when i was OD big style and thought id have no benefit money for 6 weeks :eek: but the bank explained as it was benefit money they coulnt legally keep it from me and let me draw it out every week at the correct amount. Hope this helps MM xxx dont panic!

Voyager2002 · 22 November 2006 at 1:45PM

Miss_Money wrote:

go to your bank and explain what happend. I think you will find that the bank will let you have your benefit money as they are not alowed to not let you have it.
this happend to me with natwest when i was OD big style and thought id have no benefit money for 6 weeks :eek: but the bank explained as it was benefit money they coulnt legally keep it from me and let me draw it out every week at the correct amount. Hope this helps MM xxx dont panic!

Interesting, but the OP should check that they will not face an additional bank charge for taking money out of an overdrawn account.

I would also ask: did you (OP) ever sign a form telling them to pay TCs into the joint account that is now overdrawn? If not, you could well get the money replaced, since it is their fault that it has gone there. Furthermore, the fact that they paid the money into the wrong account after your OH had told them not to does suggest that they failed to keep their records up to date, and so they could be in breach of the Data Protection Act. This is another angle that you could try with them.

taylorsmum · 22 November 2006 at 2:28PM

spoke to tc earlier they said it was there mistake but there is nothing they could do unless our bank refuses it, (well they are not going to do that as we are overdrawn,) all they kept saying was we are really sorry

Miss_Money · 22 November 2006 at 6:42PM

Voyager2002 wrote:

Interesting, but the OP should check that they will not face an additional bank charge for taking money out of an overdrawn account.
.

i bank with natwest and i didnt incur any extra charges.
You could get them to recall the money from the bank and pay it into the proper account as they have admitted its thier fault?

System · 22 November 2006 at 8:09PM

Did you ask the TCO what date your payment was due to be released by them. It normally takes at least a couple of working days for a payment to reach an account once it is released so perhaps your payment was already on it's way when you called to change the bank account details. Not much they could do to stop the payment in that instance.

Eager_Elephant · 23 November 2006 at 12:07AM

I have copied this from a previosu post on another board:

Social Security Administration Act 1992
Miscellaneous
Certain benefit to be inalienable **

187- Subject to the provisions of this Act, every assignment of, or charge on-
(a)benefit as defined in section 122 of the Contributions and Benefits Act;
(b)any income-related benefit; or
(c)child benefit,
and every agreement to assign or charge such benefit shall be void; and, on the bancrupcy of the beneficiary, such benefit shall not pass to any trustee or other person acting on behalf of his creditors.

** inaliable = not to be forfeited.

As a MOney Adviser I have used this to get HB back for a client. You may need to go higher than the person on the phone, the first person I spoke to didn't know what I was talking about but managed to go higher and my client managed to go into her local branch and withdraw all her benefit money.

Make sure you sound confident on the phone so write down a brief script, if you keep umming and ahhing they are going to know you are not sure and try and play on your ignorance of the regulation.

EE

Miss_Money · 23 November 2006 at 11:11AM

Eager_Elephant wrote:

I have copied this from a previosu post on another board:

Social Security Administration Act 1992
Miscellaneous
Certain benefit to be inalienable **

187- Subject to the provisions of this Act, every assignment of, or charge on-
(a)benefit as defined in section 122 of the Contributions and Benefits Act;
(b)any income-related benefit; or
(c)child benefit,
and every agreement to assign or charge such benefit shall be void; and, on the bancrupcy of the beneficiary, such benefit shall not pass to any trustee or other person acting on behalf of his creditors.

** inaliable = not to be forfeited.

As a MOney Adviser I have used this to get HB back for a client. You may need to go higher than the person on the phone, the first person I spoke to didn't know what I was talking about but managed to go higher and my client managed to go into her local branch and withdraw all her benefit money.

Make sure you sound confident on the phone so write down a brief script, if you keep umming and ahhing they are going to know you are not sure and try and play on your ignorance of the regulation.

EE

thanks for putting it in legal terms

it sounds better than mine :rotfl:

taylorsmum · 23 November 2006 at 2:11PM

taylorsmum wrote:

spoke to tc earlier they said it was there mistake but there is nothing they could do unless our bank refuses it, (well they are not going to do that as we are overdrawn,) all they kept saying was we are really sorry

just been checking online our overdrawn account and tc have paid more money into the account, phoned them and the woman said because of change of circumstances (new bank details), even though i told them yesterday not to use the old account, surely when we gave change of details last friday they should of taken them off the system. they have paid it into the old account just in case we do not receive any money next week and they have reduced the payments by 3 pounds because we have received 2 payments this week,

Bossyboots · 23 November 2006 at 2:18PM

taylorsmum wrote:

just been checking online our overdrawn account and tc have paid more money into the account, phoned them and the woman said because of change of circumstances (new bank details), even though i told them yesterday not to use the old account, surely when we gave change of details last friday they should of taken them off the system. they have paid it into the old account just in case we do not receive any money next week and they have reduced the payments by 3 pounds because we have received 2 payments this week,

I really don't think you gave them enough time to be honest. You are talking four working days from notification to payment. I suspect, as has been mentioned above, that the payment instruction had already gone and it was too late to stop it. Making the second payment into the wrong account though is just daft.

fatblokexl · 23 November 2006 at 6:58PM

telling tco of a change in bank dets usually takes 2-3 days for the application dets to be reprocessed and from then 2 days for new payments to be issued to the account.
any money assigned and on its way during that time will still go to the old account details.
best checking also however, who out of you and OH, who is getting what.
i.e appl 1 gets wtc paid into halifax, app2 gets ctc paid into barclays, and asking the helpline to check whether the new dets have been recorded under the right applicant and or ctc/wtc is going into the right account...wouldnt be the first time they have only changed acct dets for 1 app when the other app needs theirs amended too.

help!tax credits have paid my ctc into an overdrawn account

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