Natwest acc closure

ma77y

Hi there guys and girls, i am in need of some info regarding my bank,

It has come to my attention that my current account has been stopped due to an old account being over drawn due to charges i refuse to pay (not my fault)

The current account is my main account and the acount i use to pay my bills ect, I would also like to note that i am in receipt of JSA benefit at the moment.

So my first question is

1. Can my bank (by law) suspent an account if a benefit is being payed into it?

2. If so what can i do to to resolve this matter? ie who do i need to speak to?


Hope you can help as i am hopeless at this

Thanks Mathew

~Beanie~

Yes they can. The only thing you can do is open a new account elsewhere and get your ebenfits redirected into that.

simon_templar_2

Why do those on benefits think themselves above the law?

c0c0nuts

Beanie is quite right.
Unless your benefits are in relation to a child ie child benefit/tax credit the bank is well within its rights to suspend the account.
They can also insist upon a repayment scheme with you to settle the debt by taking a portion of your benefits when they come in- though they must discuss this with you first.
By all means open an account elsewhere, so you can redirect your benefits and access them, but be aware that you still need to settle the outstanding debt.

ma77y

simon_templar wrote: »

Why do those on benefits think themselves above the law?

Nice to see that you have something constructive to say Simon, As i am new here i would expect to be treated equal and with respect, The same as everyone else on this site!

So if you have any more irrelevant comments to make i would prefer you wouldn't bother

savagej

No, the bank cannot take your JSA, it will have to give it back to you. The law dictates both in England and in Scotland that such benefits cannot be used to pay bank charges and their is plently of case law on the subject.

Some people are giving you duff information, which country are you in?

Edit: it does not matter if you have children or not.

ma77y

Hi there Savagej, i live in the uk and any info on the matter you may have will be great,

I did hear off my bank manager that if a benefit is being payed into a bank account then the bank has to grant me access to it

but there seems to be mix'd views

savagej

the law is different in Scotland than from England.

Try Googling Govan Law Centre and benefit and see what it comes up with. It may then take you on to a link to the English system if you need it. I dont think there is much of a difference in the wording of the Social Security Act.

savagej

I would quote this to the bank:

If You are on benefits you must read this

Social Security Administration Act 1992
Miscellaneous
Certain benefit to be inalienable **

187- Subject to the provisions of this Act, every assignment of, or charge on-
(a)benefit as defined in section 122 of the Contributions and Benefits Act;
(b)any income-related benefit; or
(c)child benefit,
and every agreement to assign or charge such benefit shall be void; and, on the bankruptcy of the beneficiary, such benefit shall not pass to any trustee or other person acting on behalf of his creditors

savagej

simon_templar wrote: »

Why do those on benefits think themselves above the law?

In my opinion your halo has slipped again, why do you continue to give out advice that is patently incorrect and in this case harmful.

quietishone

savagej wrote: »

I would quote this to the bank:

If You are on benefits you must read this

Social Security Administration Act 1992
Miscellaneous
Certain benefit to be inalienable **

187- Subject to the provisions of this Act, every assignment of, or charge on-
(a)benefit as defined in section 122 of the Contributions and Benefits Act;
(b)any income-related benefit; or
(c)child benefit,
and every agreement to assign or charge such benefit shall be void; and, on the bankruptcy of the beneficiary, such benefit shall not pass to any trustee or other person acting on behalf of his creditors

This section of the 1992 Act gets quoted in a new thread every few weeks or so and always seems to raise the hopes of people in quite severe financial difficulties only to dash them again when the banks give their legal departments' view of what it means.

Basically this act says that certain benefits have to be paid to you without any prior deductions - i.e. that they cannot be used as security for some sort of loan. once the money s in the account then the law treats it in the same way as it does any other money in there and the bank is allowed to take charges, etc. from it.

If you want about other people having their hopes dashed by the misreading of this section of the act then look here -

http://forums.moneysavingexpert.com/showthread.html?t=517127

but be warned it is rather sad to read of people in desperate situations being given false hope only to have it snatched away again, particularly if they have run up significant expenditure in phone bills etc. trying to act on this advice.