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Bank keeping my benifits to pay overdraught
vegiman
Posts: 8 Forumite
Hi, I have had an overdraught facility with my bank for the last couple of years, last year through a hospital blunder i was left disabled and unable to work. the bank have now decided to call in my overdraught and as a result are keeping my benifits and disability allowance which are paid into that account leaving me with greater hardship than I have allready. Is their action lawfull. The bank by the way is Abbeyregards
vegiman
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Comments
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It will almost certainly be in the T&C's of the OD.
Get a new account with a different bank and get the money paid there.0 -
I agree with the above, get a new account asap and get your benefits paid into that one. Is the bank aware of your situation? Have you discussed a repayment plan taking into consideration your circumstances?0
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don't think they are allowed to take benefits payments to clear debtsEx forum ambassador
Long term forum member0 -
Heres two resources talking about banks not allowed to withhold benefit payment:
http://www.warwickdc.gov.uk/WDC/Health+and+social+care/Social+policy/Social+benefits/Housing+benefits/Safeguarding+Housing+Benefit+payments.htm
http://www.corby.gov.uk/SupportingDocs/docs.supporting.released.2008-3.21193.Corby%20%20right%20of%20appropriation.pdf
you may want to google* 'First Right of Appropriation'
*Other search engines are available0 -
as has been mentioned get another basis bank account with barclays or cis
abbey are !!!!!! anyway0 -
No they are not allowed to keep the benefit payments but unless you have another bank account then it's a nightmare!
Set up a second account with someone else ASAP and get your benefits paid in there - otherwise you will be battling non-stop with them over this money! You can then start battling them to get them to refund your benefit money (I'm not sure if there are SOME they can keep and others they can't but I would assume they can't keep any of them
) - however they WILL no doubt drag their heels over this... DFW Nerd #025DFW no more! Officially debt free 2017 - now joining the MFW's!
My DFW Diary - blah- mildly funny stuff about my journey0 -
So they are not supposed to be able to use the benifits, but you have to tell them by the looks of the info in the links
usefull to know.
Look like the process to stop them and get any money back will be time consuming and complicated also any other money mixed in they can have so that would make things even more complicated.
Get another account ASAP it will be the simplest way to protect any future payments.0 -
Hi, I have had an overdraught facility with my bank for the last couple of years, last year through a hospital blunder i was left disabled and unable to work. the bank have now decided to call in my overdraught and as a result are keeping my benifits and disability allowance which are paid into that account leaving me with greater hardship than I have allready. Is their action lawfull. The bank by the way is Abbey
regards
vegiman
I had this problem whith NatWest while having an overdraft.I opened a post office account for my benifits to get paid in to.Now I put money in to NatWest as much as I can afford each week.It seems that I have more money to spend ever since moving accounts.Banks with overdrafts facilitys take all money in bank accounts straight away as you owe the bank.
Hope this info helps.:A :A :A :A :A :A :A
Over 1000 pound in debt.
To many red letters.
Welfare Rights helped me out.
Now I pay a little amount each month to clear debt.
So much eaiser the pressure has been taken off me. :A :A :A :A :A :A :A0 -
The bank can take bank charges from benefits. It is an urban myth that says they cant.0
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simon_templar wrote: »The bank can take bank charges from benefits. It is an urban myth that says they cant.
No, it's not - it says quite clearly in the law that any charge on a benefit is void. It also says that in bankruptcy, benefits do not go to the Official Receiver etc.
That is NOT to say that credit is wiped out or anything, just that the bank cannot take all of your benefits to re-pay the debt. It can take them by your agreement, but it cannot leave you penniless if all you have is benefit income.
Google "Social Security Act 1992" and you'll find it.What would William Shatner do?0
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