Lloyds TSB-major fight, wont agree taking someone's benefits is againts the law??!!

Winnie_84

Major Drama with Lloyds TSB

Unemplyed on a student bank account with only student loan to live off. Told bank i would have no income for 6 weeks, due to finishing degree and waiting for income from new job. Had meeting with bank and spoke to their debt advisor line who said they would not charge me if the accidential thing bounced out. Well! surprise surprise, one cheque of £15 bounced out and in the 6 weeks they have charged me just over £600 and will take next month over £300!!! :mad: this was sue to one charge with a domino effect which lead to that!!

After several letters etc, and lots of research etc told then about the Social Secruity Act 1992, said this is all fair and I will have no refund. So basically they have removed half of my income, i dont even have enough money to pay my rent. Lloyds refuse to accept they even had a chat with me in the first place. I have used the templates and been demanding etc but they wont change their minds, even had one lady said its my fault for not working hard enough!

I am my wits end..what can i do??

Orford

I'm afraid Lloyds are correct.

The two Acts of Parliament that govern how benefits are paid are the Social Security Administration Act 1992 and the Tax Credit's Act 2002. Both of these have clauses which apparently make it unlawful for banks to impose bank charges on benefits.

HOWEVER by 'charges' they DO NOT MEAN BANK CHARGES. What is meant is things like attachment of earnings and charging orders.
Although there is some ambiguity, if you took a case to reclaim bank charges to court based on s187 of the Social Security Administration Act 1992 or s45 of the Tax Credits Act 2002 the court would almost certainly find against you.

No one is saying that the banks have the right to take money from benefits, only that you can't use the Social Security Administration Act 1992 or the Tax Credits Act 2002 to stop them. Money taken from benefits is unlawful - but unlawful by virtue of the Unfair Terms in Consumer Contract Regulations 1999 and the common law on penalties in contracts , not under the Social Security Administration Act 1992 or Tax Credits Act 2002 (unfortunately).

Winnie_84

well that isnt very helpful at all, so because everyone else can reclaim bank charges i cannot beacuse i was on governement student loans!

If anyone can offer some helpful advice that would be more appreciated.

thanks

Tozer

You may not like Orford's advice but it is the 100% correct legal position.

Winnie_84

so everyone else can claim but me???

Tozer

Winnie_84 wrote: »

so everyone else can claim but me???

That is not what is being said at all. You asked could the SSA Act assist. The answer is no. Your rights are the same as everyone else.

Have a look at the threads on hardship claims as well.

mrmajika

Ok - so if you didn't find Orford's advice helpful, try this:

You can reclaim all your money back instantly and get another £100 on top for your troubles.

How's that for you?

Sadly, it's not true.

Orford's advice may not be what you want to hear, but it was accurate and certainly helpful.

shooter

Winnie_84 wrote: »

Major Drama with Lloyds TSB

Unemplyed on a student bank account with only student loan to live off. Told bank i would have no income for 6 weeks, due to finishing degree and waiting for income from new job. Had meeting with bank and spoke to their debt advisor line who said they would not charge me if the accidential thing bounced out. Well! surprise surprise, one cheque of £15 bounced out and in the 6 weeks they have charged me just over £600 and will take next month over £300!!! :mad: this was sue to one charge with a domino effect which lead to that!!

After several letters etc, and lots of research etc told then about the Social Secruity Act 1992, said this is all fair and I will have no refund. So basically they have removed half of my income, i dont even have enough money to pay my rent. Lloyds refuse to accept they even had a chat with me in the first place. I have used the templates and been demanding etc but they wont change their minds, even had one lady said its my fault for not working hard enough!

I am my wits end..what can i do??

Hi winnie 84

What orford has said is correct you cannot use the SSA act to bring a case against the bank for reclaiming charges.

Having said that, you can still make a claim against them.

have a look at this;

The hardship conditions are explained under the heading
Dealing with complainants in financial difficulty - annex 2 here:

http://www.fsa.gov.uk/pages/Doing/Re...sp_monthly.pdf

You already fit one of the criteria and you may fit more when you read it.

write a letter to your bank using the criteria to state why you believe you fulfil the criteria

see my thread to get the gist of what to write

http://www.legalbeagles.info/forums/...ead.php?t=9830

but do make sure the letter is personal to you, many banks are now either paying out on hardship cases or or stopping charges and interest on accounts until the outcome of the test case as my bank have done for me.

I have threads on CAG (user name belville) and on Legal beagles (user name shooter) where I have posted the letters I have sent.

Please send me a pm if you need more help.

good luck

Shooter x

shooter

Hi guys

Reclaiming can be very stressful and some people clutch at straws and then find it difficult to accept what they are being told.

It really doesn't help to get antagonistic towards someone who is not understanding what you are telling them, there are much better ways than the posts that have been posted here.

Please remenber that winnie probably quite young and this may be a very hard learning curve that he/she is finding difficult to grasp, so please show some compassion in future.

MSE is hear to help NOT to scare people away

Shooter

Tozer

shooter wrote: »

Hi guys

Reclaiming can be very stressful and some people clutch at straws and then find it difficult to accept what they are being told.

It really doesn't help to get antagonistic towards someone who is not understanding what you are telling them, there are much better ways than the posts that have been posted here.

Please remenber that winnie probably quite young and this may be a very hard learning curve that he/she is finding difficult to grasp, so please show some compassion in future.

MSE is hear to help NOT to scare people away

Shooter

I don't see anyone being antagonistic?

shooter

mrmajika wrote: »

Ok - so if you didn't find Orford's advice helpful, try this:

You can reclaim all your money back instantly and get another £100 on top for your troubles.

How's that for you?

Sadly, it's not true.

Orford's advice may not be what you want to hear, but it was accurate and certainly helpful.

Well I find this antagonistic!