JSA paid late - bank charges incurred

SnowyOwl_2 · 11 January 2005 at 9:52PM

Hello All

I am currently between jobs, and receiving Job Seekers Allowance. When I went to sign on on Wednesday last week the guy I dealt with asked how I received my payments. I told him that it always went direct into my bank account, and that I did not receive cheques. He said something along the lines of that being OK then, and that I'd receive it as usual.

So, I went off and paid for a few things using my debit card and they went through. I also had a cheque due to go out, and a direct debit, all of which were coverable by the JSA payment.

To my horror on Saturday I received a letter from my bank informing me of bank charges because they honoured the cheque (on the Thursday) even though I had insufficient funds. I looked at my internet account and discovered that they had also honoured the direct debit and the debit card payments. And today I received the letters telling me that my I had further charges. It all adds up to £88.00. My JSA allowance was paid in on Monday this week ie paid late.

I have spoken to my bank and as a goodwill gesture they have waived one charge, £30. While I told them the story they just told me to check my account before spending (I wanted to avoid a black mark against my name, as this situation isn't entirely due to my mismanagement of money).

Am I entitled to claim the bank charges, now £58, back from the DSS? Who should I speak to? This is hateful, I am so desperately trying to find work - I am already stressed/depressed and can do without this hassle, so I just want to check if it's even worth my while bothering.

Thanks for any advice anyone can give.

Sad Snowy Owl

Fran · 11 January 2005 at 10:20PM

Hi SnowyOwl,

Did they say why they wanted to know about how you were paid in the Jobcentre? Why was the payment late? I would guess that you have more chance with your bank than with DSS, could you see bank manager again and try to get the other amounts waived too? Perhaps write to him/her this time also visit again once you know the reasons why it was late. I avoid direct debits for this reason when on benefits as it's never guaranteed and when you have no reserves you get stuffed like this.

Good luck.

mini · 12 January 2005 at 12:30PM

Hi,

I would say to ring your benefits office, they hsould tell you to write to teh customer srvice manager explaining what has happened, you will laso need to get a letter from your bank saying charges have been incyurered on which date so the benefits people know it's their fault, I'd reommend going into the branch & insisting they write it there & then, send it/take it with your explanation, if you don't get any success, you shouldthey do refund bank charges when payments are late & it is their fault, I would say to cntact your MP, may sound extreme but that £58 I presume is alot of money to you.

Hope that helps

mini

Emmacw · 12 January 2005 at 6:19PM

Hi!

I might be being thick but you say you went in Weds last week i.e. Weds 5th Jan 2005?

If so you're JSA payment would have been generated on that day. It is not sent out (via bank or giro) until you attend the Jobcentre and make your declaration. If someone 'signs' on a weds then the payment should take upto 4 working days to reach their bank account.

There is no way the payment would get to you the day after you 'sign'.

If you have just recently made a claim to JSA the advance payments over the Christmas period to take account of the postal delays may have lead you to believe your payments are made instantly or prior to you 'signing'.

NB. When you were asked about how you were usually paid it is likely to have been to check you were being paid by bank account. If you were still on girocheques your person would then have had to launch into a pitch on converting your method of payment to bank account as giro's are being phased out.

Hope this helps

SnowyOwl_2 · 13 January 2005 at 9:58PM

Hi all

Thanks for your advice.

I double checked, and while I normally receive my JSA on a Thursday, this most recent payment was made on the Monday - plus of course the sign on days were not in the usual pattern due to the Christmas and New Year holidays.

Following Emmacw's message I looked at my papers, and it does say that it will take 4 days for the monies to come through. So they aren't at fault - I am so glad I didn't lift the phone and start shouting. At least my bank has waived one charge, though the rest add up to more than a week's JSA. Aw well, will just have to bash a few credit cards. I have a couple of interviews lined up, wish me luck...

Snowy Owl

Fran · 14 January 2005 at 3:15AM

SnowyOwl,

Good luck with the jobs. I would still try again with the bank though.

MarkyMarkD · 16 January 2005 at 5:53PM

Fran

[high horse mode]It wasn't the bank's fault. It was the customer's/claimant's as they've admitted.

The bank's ALREADY waived one charge - out of goodwill. I don't see why they should waive any more.

Regarding the OP's wording (paraphrased) - "I expected to receive my benefit on the Thursday, so I went out and spent money on the debit card on the Wednesday".

Well - what leg precisely are you going to stand on when you appeal to the bank? You spent money you didn't have.

It's against all banks' terms and conditions to write cheques, or make debit card payments, unless you have the funds there and then. If you seek to take advantage of the clearing delay, that is taking advantage and it sometimes doesn't work. Even if the benefits had been paid on Thursday, spending on Wednesday is wrong.[/high horse mode]

I know that people on benefit are often short of cash. But there's little mileage in having a go at the bank for simply applying their terms & conditions - especially when they've already applied a degree of leniency (presumably because it was a first time offence?).

david2903 · 15 June 2009 at 6:33PM

Hi exact thing happened to me a few times, for example on 15 may 09 my jsa money never went in the bank, and i had 3 direct debits go out on the £15, i got instantly charged £25 per direct debit (£75) which made my account about £75 overdrawn and another 3 direct debits went out on the17th, so now i was £150. i was furious, i went into the dole office and wrote a letter to the dole payment center in Glasgow (along with bank statements) letting them know this, they agreed to pay the charges of £150 but by the time they made a refund. my account was being charged £5 a day for being overdrawn so i had about £60 of unpaid overdraft fee's so i wrote to the dole and got this paid. so if it ever happens to you. all you have to do is write to the jsa payment centre (with copys of bank statements) and they WILL pay all charges if you can prove that they was caused through non payment of dole money

GoldFool · 16 June 2009 at 9:47PM

Just for those that have had direct debits go out and have then been hit with charges, with some banks (Lloyds, for example) if you see the direct debit has gone out but there's no money, you can recall it in. As long as you do it before 3pm, you don't get any charges.

I monitor my husband's account on days I'm expecting his ESA and do this immediately. Through various errors with ESA it's saved about £150 in charges. Just check online the day your direct debits are meant to go out; if there's no money from the DWP, phone the bank and recall the payment.

The department at Lloyds is "periodic payments".

JSA paid late - bank charges incurred

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