Bank Charges when on Benefit - HELP PLEASE!!
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skint.com
Posts: 5 Forumite
Hi,
Apologies if this is posted already. I have stumbled upon the following.... is it legit does anyone know please?
'There is an Act of Parliament which over-rides banks taking charges from your account if you are in receipt of any of the following benefits.
• Income Support
• Tax Credits
• Child Benefit
• Job seekers allowance
• Incapacity benefit
• Disability living allowance...
• Attendance Allowance
• CSA payments
• Other DWP payments.
These social security benefits are granted to stop hardship and are designed to meet basic day to day needs, and are exempt and are protected under the Social Security Administration Act 1992 sub section 187. from arrestment in terms of section 187 of the Social Security Administration Act 1992 (see Enforcement of Civil Obligations in Scotland, Scottish Executive report, at paragraph 5.245).
Section 45 of the Tax Credits Act 2002 Chapter 21 part 1 is an identical provision to the said section 187 of the 1992 Act. This stipulates that the banks can not apply any charges to money received as benefit, and any such charges are unlawful and therefore disallowed.
Go to your bank and speak to them about their charges. All the info you need is here. Claim back what should never have been taken from you in the first place!'
Thanks folks,
Skint.com
:T
Apologies if this is posted already. I have stumbled upon the following.... is it legit does anyone know please?
'There is an Act of Parliament which over-rides banks taking charges from your account if you are in receipt of any of the following benefits.
• Income Support
• Tax Credits
• Child Benefit
• Job seekers allowance
• Incapacity benefit
• Disability living allowance...
• Attendance Allowance
• CSA payments
• Other DWP payments.
These social security benefits are granted to stop hardship and are designed to meet basic day to day needs, and are exempt and are protected under the Social Security Administration Act 1992 sub section 187. from arrestment in terms of section 187 of the Social Security Administration Act 1992 (see Enforcement of Civil Obligations in Scotland, Scottish Executive report, at paragraph 5.245).
Section 45 of the Tax Credits Act 2002 Chapter 21 part 1 is an identical provision to the said section 187 of the 1992 Act. This stipulates that the banks can not apply any charges to money received as benefit, and any such charges are unlawful and therefore disallowed.
Go to your bank and speak to them about their charges. All the info you need is here. Claim back what should never have been taken from you in the first place!'
Thanks folks,
Skint.com
:T
0
Comments
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The quoted law does exist, but it has been misinterpreted. The SSAA refers to charges in the legal sense, not bank charges. If you are having problems managing your budget it would be worth posting a statement of affairs on the Debtfree Wannabe board.0
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thank you. i shall take a look there next. ive not been on this site, or manageing my finances for a few years now, but the time has now come!!
xx0 -
Its an internet myth. A case of adding 2+2 and coming up with 100.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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What the act does is the following:
Let's say you have a basic cash account with no overdraft facility.
You run your account badly and rack up £80 of charges one month.
The bank applies those charges and it takes your balance to -£80.
Your benefits of £80 get paid into your account taking your balance back to £0.
The bank has to allow you access to that £80, they can't swallow up that £80 to pay off your overdraft facility. The bank is still perfectly entitled to charge you for using overdraft facilities etc but is also obliged to provide access to your benefit money.DEBT FREE!
Debt free by Xmas 2014: £3555.67/£4805.67 (73.99%)
Debt free by Xmas 2015: £1250/£1250 (100.00%)0 -
That got me hopeful there ... so this means it is valid for my bank to charge me £24 a month (£18 interest & £6 charge) because of my overdraft, when I am on ESA?Sealed Pot Challenge No. 3530
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That got me hopeful there ... so this means it is valid for my bank to charge me £24 a month (£18 interest & £6 charge) because of my overdraft, when I am on ESA?
Yes. Don't like the charges, don't go overdrawn.DEBT FREE!
Debt free by Xmas 2014: £3555.67/£4805.67 (73.99%)
Debt free by Xmas 2015: £1250/£1250 (100.00%)0 -
i am on ESA too, and struggling!! barclays. standard current account. ive just totted up nearly 200.00 of charges (excluding interest) going back just to January 2012. am i entiteled to a refund? or do i just ask nicely and hope for the best?
confused....
x0 -
i am on ESA too, and struggling!! barclays. standard current account. ive just totted up nearly 200.00 of charges (excluding interest) going back just to January 2012. am i entiteled to a refund? or do i just ask nicely and hope for the best?
confused....
x
you are not entitled to a penny refunded. You can ask them nicely to help you and if they think you are in genuine financial hardship then they will often look at solutions.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Hi,
Apologies if this is posted already. I have stumbled upon the following.... is it legit does anyone know please?
'There is an Act of Parliament which over-rides banks taking charges from your account if you are in receipt of any of the following benefits.
• Income Support
• Tax Credits
• Child Benefit
• Job seekers allowance
• Incapacity benefit
• Disability living allowance...
• Attendance Allowance
• CSA payments
• Other DWP payments.
These social security benefits are granted to stop hardship and are designed to meet basic day to day needs, and are exempt and are protected under the Social Security Administration Act 1992 sub section 187. from arrestment in terms of section 187 of the Social Security Administration Act 1992 (see Enforcement of Civil Obligations in Scotland, Scottish Executive report, at paragraph 5.245).
Section 45 of the Tax Credits Act 2002 Chapter 21 part 1 is an identical provision to the said section 187 of the 1992 Act. This stipulates that the banks can not apply any charges to money received as benefit, and any such charges are unlawful and therefore disallowed.
Go to your bank and speak to them about their charges. All the info you need is here. Claim back what should never have been taken from you in the first place!'
Thanks folks,
Skint.com
:T
From the MSE guide to reclaiming bank charges:
Note: this doesn't specifically cover the deduction of bank charges from your benefits under the Social Security Administration Act 1992 - this is an urban myth.
http://www.moneysavingexpert.com/reclaim/bank-charges0 -
you are not entitled to a penny refunded. You can ask them nicely to help you and if they think you are in genuine financial hardship then they will often look at solutions.
S/he might be entitled to some sort of refund depending on their bank's policy. It's certainly worthwhile calling up and asking for their charges to be refunded.DEBT FREE!
Debt free by Xmas 2014: £3555.67/£4805.67 (73.99%)
Debt free by Xmas 2015: £1250/£1250 (100.00%)0
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