Bank keeping my benifits to pay overdraught

oxenryd

frepol wrote: »

Why would anyone with a shred of morality want to confiscate a person's benefits to pay a bank charge(s)? Why would anyone look for a reason to justify them?

Why would anyone with a shred of morality want to go over their limit and therefore (knowingly) incur a bank charge? *

Sorry couldn't resist.

* Before anyone "shouts" back at me about this case to say the authorised overdraft was withdrawn and that this is why the OP got charged, therefore not being "Knowingly", you have to remember that an overdraft can be withdrawn at any time no notice, whether on benefits or not.

frepol

People don't always knowingly go over their limits but banks seem now to be applying the charges mercilessly. However, the cycle of charges really doesn't help - particularly on a low income. The Number 10 site is as usual a load of New Labour marketing - answers written by a junior press officer as opposed to anyone with authority. However, I think that the government has shown a total inability to confront moral(?) issues like this and has instead farmed it out to QUANGOs and others such as the Ombudsman and the FSA. It is a sad irony that the Banks with the highest charges are the state owned RBS and Lloyds.

vegiman

Hi, I would like to thank al of you who have replied to my thread, in particular Barclays Manager, there was of lot of advice, so i can now try and resolve my problem.
I would like to point out that Oxenryd comments regarding people going into O/D situation is valid, but not in my case, as I have already said my banking was running ok until a hospital blunder made me disabled, and therefore can no longer work to earn and pay my way.
thank you all once again

vegiman

jonesMUFCforever

vegiman wrote: »

Hi, I would like to thank al of you who have replied to my thread, in particular Barclays Manager, there was of lot of advice, so i can now try and resolve my problem.
I would like to point out that Oxenryd comments regarding people going into O/D situation is valid, but not in my case, as I have already said my banking was running ok until a hospital blunder made me disabled, and therefore can no longer work to earn and pay my way.
thank you all once again

vegiman

Surely then you are taking action against the hospital?

iceicebaby

If they cant take money from benefits as its taking the money away from what the money is supposed to be for ie to live on, the same could be said for wages paid into an account ?

simon_templar_2

It has been established they can take money from benefits.

Extant

simon_templar wrote: »

It has been established they can take money from benefits.

Yes, they physically can.

However an escalated complaint to the FOS will tell you they can't, because of how the FOS reads the quoted law (not what the PM's website says). As said before, it is how OUR authorities read the law that matters.

Realistically, though, these cases would never get to the FOS - it's not worth the money to go, and it's a public relations disaster if it gets out - imagine The Sun leading with "Bank steals child benefit" or similar.

Then again, we've all seen that Abbey can't really be bothered with anything, let alone effective complaint handling.

Extant

iceicebaby wrote: »

If they cant take money from benefits as its taking the money away from what the money is supposed to be for ie to live on, the same could be said for wages paid into an account ?

No. It's not about what the money is intended for, it's about the interpretation of a certain law, which I've quoted below for you. This does not apply to a salary.

SingleSue

Could you speak to Abbey and explain that the removal of the overdraft has left you with no money to eat etc, they could arrange to do a manage down of the overdraft where by each week/month etc they reduce your overdraft down at an agreed rate until the balance reaches zero.