charges & welfare benefits?

ghetto-wench

hello folks,
I'm new today & have a question about bank charges levied on those on welfare benefits. Maybe you can help or maybe you know this topic has been covered before & can direct me.
I am currently unwell & receiving Incapacity Benefit, Low Grade Disability Allowance & Child Tax credit. This is the total of my income & of course, does not cover my outgoings, which I have stripped back to the bone. I was recently hammered with £75 of charges for a very small, 3 day totally unintended overdaft. This is half my total income & literally left us unable to eat, as I also have a fair few repayments to make each week on top of my living expenses.
I spoke with the bank's (lloyds) "hardship" dept. but they showed little concern. I had an appointment at the branch, but again the help offered was just to do budgetting I had already done.
A friend suggested it was illegal for banks to take your benefits in charges, is this the case please? -or is this the same as any charges being deemed illegal no matter your circumstances?
many thanks,
g-w

natweststaffmember

ghetto-wench wrote: »

hello folks,
I'm new today & have a question about bank charges levied on those on welfare benefits. Maybe you can help or maybe you know this topic has been covered before & can direct me.
I am currently unwell & receiving Incapacity Benefit, Low Grade Disability Allowance & Child Tax credit. This is the total of my income & of course, does not cover my outgoings, which I have stripped back to the bone. I was recently hammered with £75 of charges for a very small, 3 day totally unintended overdaft. This is half my total income & literally left us unable to eat, as I also have a fair few repayments to make each week on top of my living expenses.
I spoke with the bank's (lloyds) "hardship" dept. but they showed little concern. I had an appointment at the branch, but again the help offered was just to do budgetting I had already done.
A friend suggested it was illegal for banks to take your benefits in charges, is this the case please? No they are wrong. The bank cannot assign at court the income to cover a debt -or is this the same as any charges being deemed illegal no matter your circumstances?
many thanks,
g-w

Please read the FSA Waiver on Hardship(on my signature) especially PAGE 11.
Target your letter at those things that cover yourself and write to LloydsTSB head office as the branches do not deal with Hardship cases. If they still say NO then contact the Financial Ombudsman Service and ask them to take a look.

ghetto-wench

thank you for reply but I don't quite understand.
" A friend suggested it was illegal for banks to take your benefits in charges, is this the case please? No they are wrong. The bank cannot assign at court the income to cover a debt --" -do you mean the friend is wrong or the bank? I assumed friend....but then I'm afraid i also don't really understand the next bit : The bank cannot assign at court the income to cover a debt - what does that mean please?

thanks.

natweststaffmember

"The purpose of the Social Security Administration Act 1992 Section 187 and section 45 of the Tax Credits Act 2002 is to prevent people’s benefit money being at risk by it being assigned over to a third party in settlement of a debt. It is not intended to prohibit the application of bank charges. Bank charges are in the nature of an expense, and are incurred by the holder of the account; tax credits and benefits are payable in order to help customers meet their expenses, and as such it is legitimate for banks to deduct charges from the balance of an account held in that bank, whether the money paid into the account comes from tax credits, benefits or other sources, such as earnings."
Unfortunately due to site rules I am unable to give the source of the above quote but it should explain why I have the view that I have. I hope that helps. Your friend is wrong was what I meant.