Can Anyone Help...Benefits and Bank

ravingmad_2 · 20 December 2006 at 2:30PM

Just got the letter to say that hubnby is entiltlred to DLA which was good news, however on reading the backdated money was paid into our old bank account, this bank account had an overdraught on it. We were told some time ago we could no longer use the bank account because all monies stopped going in, will the DLA money have been took off our overdraught and is there any way we can get this money back as we could have really done with this money having had no money for weeks and NO pressies for christmas for the kids..the kids were great about this and understood how difficult this year was with hubby having to give up work due to heart disease.
I know its our fault for not contacting the DLA to change our bank details but it never entered my mind as we have been turned down before.
I heard somewhere the bank could not take benefits for paying off overdraughts, where could i get some help?
Thanks for reading this long post, sat hear in tears at the moment. iTS THE FIRST BIT OF GOOD NEWS WE HAVE HAD FOE AGES THEN IT ALL GOES BOTTOM UP

MRS_TO_BE_2 · 20 December 2006 at 10:38PM

Best bet is CAB. I have also heard that banks can not use benefit payments to offset overdrafts but don't know under what regulations.

Make sure you ring DLA and ensure future payments are not paid into the same account.

You don't say what other benefits you are on but I would recommend you seek advice about Income Support entiltlements as the award of DLA can increase the amounts paid.

Kazonline · 20 December 2006 at 10:53PM

this is thanks to MCBirnie on Debt free wannabe board under the new year thread

6) I am so annoyed that people have benefit payments taken by the banks, this is ILLEGAL. I work in the Jobcentre, it's a fact. If the bank are swallowing your benefit/tax credits send the following :-

your address]

[bank name & address]

[date]

RIGHT OF APPROPRIATION

Dear Sir/Madam,

ACCOUNT NUMBER: xxxxxxxxx

I am writing to inform you that I am due to have a Tax Credit payment of £xxx paid into my account on xx/xx/xx, and I wish to use my first right of appropriation for this money, for the following purposes;

Rent £xx
Utilities bills £xx
Housekeeping money £xx

I will withdraw the money on the day that it is deposited for the above use, and I would be grateful if you would ensure that any other payments out of my account do not interfere with this withdrawal.

Yours faithfully,

[signature]

[print name]

The jobcentre/DWP can also follow this up for you. Ask them.

Hope that helps,
Kaz x

peter999 · 21 December 2006 at 10:03AM

ravingmad wrote:

I heard somewhere the bank could not take benefits for paying off overdraughts, where could i get some help?
Thanks for reading this long post, sat hear in tears at the moment. iTS THE FIRST BIT OF GOOD NEWS WE HAVE HAD FOE AGES THEN IT ALL GOES BOTTOM UP

See these threads:

Bank taking your Benefit? Quote this -
http://forums.moneysavingexpert.com/showthread.html?t=269424

can banks do this with benefit money
http://forums.moneysavingexpert.com/showthread.html?t=275205

peter999

ps: MSE chat forum server upgrade is looking good !!
-forum is running nice & fast.

Glyndwr_2 · 21 December 2006 at 9:21PM

MRS_TO_BE wrote:

You don't say what other benefits you are on but I would recommend you seek advice about Income Support entiltlements as the award of DLA can increase the amounts paid.

If you're getting Council Tax, it can also increase the amount so get in touch ASAP and tell them you've only just heard & it's backdated to [whenever], can they backdate theirs? I'm not sure if they can, but it's not your fault if you couldn't tell them before.

Can Anyone Help...Benefits and Bank

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