Clydesdale - frozen my benefits

Memory_Girl

Hi Guys - hope you can help

Avid follower of DFW - surviving on benefits since April since business (Ltd Co)was put into Administration. And actually as a single Mum with two lovely boys (Aged 9 and 18months) we were keeping our head above water thanks to OS and my own "Make Do and Mend" mentality. Bless my ever tightening SOA>

Better than keeping head above water actually!! Little by little every month we were inching our way ahead.

I have a personal Offset Mortgage of £126000 with Clydesdale and my benefits get paid in there - and mortgage payments come from there. As of this morning my offset account sat at £125033.48. Meaning that I had available funds of £966.52. My target was to take this over the £1000 in the next 30 days, leaving me funds for the big winter fuel bills, car tax and insurance, sons school lunches and maybe a wee Xmas present for them both as well as money to start repaying the one debt I have left to honour.

Today my Income support was due in - so I toddle off with both kids (one off sick today with raging ear infection) to get a prescription (Free), and to get £10 from the wall to buy some nappies and put £5.00 petrol in the car to get my son to school for the rest of the week.

But found that the bank have frozen my account - leaving me the grand total of 71 pence to my name - and only 3 nappies in the bag.

Apparently because there was a personal guarantee of £10000 with the business (the one debt I have and one they said would not be persued until the business was wound up) they are allowed to take my personal funds without approaching me to make an arrangement to pay. No notification, no warning.

Firstly - are they allowed to take my income (benefits only) and leave me penniless.

Secondly - was it right that I was informed this in the middle of the bank - not taken off to one side or into a private office. Leaving me in tears and my son hysterical because he thinks as we have no money and cannot now pay the mortgage on Thursday that we will lose the house and he will have to go into care. (NOT HAPPENNING BTW!!!!)

Third - as they have frozen my account does that mean on Thursday when I can't pay the mortgage that I am in default and they can withdraw the mortgage arrangement meaning we could lose our home??

In a bit of a panic here as you can imagine - although I have managed to sort out a crisis loan tomorrow for £50 and got an appointment with another unaffiliated bank to set up an account to pay the benefits into.

I've also been violently sick, had a cry and a large mug of coffee with 2 paracetamol so I am ready to do whatever it takes to make this better for my boys with your help.

Please help

Memorygirl

PS There is light atthe end of the tunnel because I have a new job starting in the New Year so will be off benefits then and a better role model for my sons (Joking!!)

RAS

Hi

You are under the Scottish system and support here is less good for that legal system

Please contact NDL or CCCS, both of whom have Scottish advice sections http://www.moneysavingexpert.com/loans/debt-help-plan#help

They are both open for at least two hours more toinight.

By the way, I do think they can take benefits but you need to ask.

Memory_Girl

Thanks RAS - will go and call then right now

Memorygirl

Memory_Girl

Thank you for the contact number.

I have chatted to CCCS and given them most of the details they need - with a list of those to complete in the morning (when it is light enough outside to read the utility meters)

I have been asked to contact the bank tomorrow to quote the "Social Security Administration Act" - basically to say that all the funds are govt funds (Benefits) and that I require access to those monies to live. They don't have to comply but appealing to their better nature is the first step.

Following that and knowing that my Child Tax Credit may hit the account on FRiday and be swallowed up I have been asked to write a note to the bank to be handed in personally. This my is called "excercising my first right of appropriation". The wording suggested is

"on the x of October 2009 my Child Tax Credit will be paid in to Account number XXX. I am excercising my first right of appropriation over these funds from which I wish you to pay the following items:

List any relevant DD etc here. "


Unfortunately they cannot let me withdraw money for food, nappies or fuel - but hopefully will bring me enough breathing space to ge a parachute account set up and future funds paid in.

The young lass was lovely - I would highly recommend that you contact them should a financial disaster occur. If nothing else I have a list of actions to do in the morning.

Sad bit is that they cannot give me an appointment until early November some time - so hopefully I will not be in too much trouble by the time they can get around to me.

If anyone else has some sterling advice of how I can go forward I would really apprieciatethe help.

Many thanks

Memorygirl

insideinfo

CCCS will be referring to this no doubt; more comment follows the facts''

Social Security Administration Act 1992
1992 CHAPTER 5

(google in on OPSI, I can't post the link)

Section 187
Certain benefit to be inalienable.(1)
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,.


In other words the Secretary of State gives you these benefits to support you and yours, it's technically not your money it's the states. It isn't yours until you are in control of it, if the bank snatched it they have removed a means tested benefit. They have left you in hardship and vulnerable. You must lay these accusations at them. Ask them to help you find sustinence for your children and even request information of any schemes they run to supply food vouchers (don't baulk at this, as it really could be someone who is left without food). They must give you your money back, less a token towards your debt. Your call will be recorded (as usual). They may at first refuse. If so make a note of the person you spoke to and their office location, get this at the begining of the call.....

The Ombudsman will have an opinion and can and often do instruct the bank to back off and help you out. I'ts been advised many times before and it really works.

Shame on them. Dispicable behviour taking benefits. Like I say shame on them. Good luck.

tallyhoh

Anyway of opening another basic account & getting your benefits paid in there in future?

Happiness6500

hi Memory Girl , welcome to DFW page. I am so sorry to here of your trials. These people seemed to have had there compassion bones removed .

Im no expert im afraid but just wanted to lend my support as fellow debt sufferer and fellow Scot. Like yourself im just about to speak to CCCs re my debts. I have an advisor appointment tomorrow afernoon. So hopefully will take me on the road to one day being Debt Free.

Wish I could have told you , what the National Debthelpline told me couple of days ago and the first thing was ...get a Basic Bank Account that allows wage/benefit pay in and can pay standing orders and direct debits and that you dont have any loans or overdrafts with this bank . IE no requirement to enforce . offset payments. This is war hunny and the bank is not your friend and you owe them nothing (well apart from the debt --- you know what i mean)

I have just opened a current account with a Scottish Independant Bank, if you would like details send me a private message.

Anyway , keep me posted on progress , Today is the first day of the rest of your life xx

yellowduck_2

just want to say that I am so sorry you have had so much stress, I have no practical advice but am of the understanding that benefits are calculated to give you a subsistence level of money and are not for paying debts. It angers me that a bank can do this to you, after all they are not going to collapse if they have to wait for money from you but you have children to provide for. Really hope things improve.

Memory_Girl

tallyhoh wrote: »

Anyway of opening another basic account & getting your benefits paid in there in future?

Got an appointment with BOS (non-affiliated bank) to open an account at 10.30 am this morning.

In the meantime I have requested that all benefits be paid into an old RBS savings account that had £3.00 in it - because I don't know how long it will take to set up another account.

Thanks for your help though - new to this battling with banks malarky.

Memorygirl

Memory_Girl

Happiness6500 wrote: »

Anyway , keep me posted on progress , Today is the first day of the rest of your life xx

Happiness 6500

I've spent a very sleepless night (combination of eldest with ear infection and bad dreams about people coming to take him away) and of course an 18mth old who has decided he is going through a growth spurt and seems to want to feed every hour on the hour (thankfully MSE baby so BF is free LOL)

It made my heart sing this morning to get so many supportive messages on this forum - as a single MUm you become so isolated and you truly forget that despite the fact that everyone has their challenges in life - that most people are basically good and wish you only the best.

Your simple message has given me the strength to get up and focus on what needs to be done today so that I can go to bed tonight knowing that I am being the best Mummy for my boys that I can be.

I am raising a cup of coffee in all of you honour:beer: (I know but the closest I could get)

Memorygirl

Memory_Girl

yellowduck wrote: »

just want to say that I am so sorry you have had so much stress, I have no practical advice but am of the understanding that benefits are calculated to give you a subsistence level of money and are not for paying debts. It angers me that a bank can do this to you, after all they are not going to collapse if they have to wait for money from you but you have children to provide for. Really hope things improve.

You've hit the nail on the head yellowduck. The most important thing is that I have my boys to provide for.

The irony of it is, that by being so very careful with my benefits I was actually being able to save ahead for all the Once-a-year and big bills. Not a lot, but a few quid a week really starts to make a difference - and made a difference to my head too as I began to take control for providing for my boys needs.

In one swoop my last 7 months of careful money management has been swallowed by the bank and I am now in real financial hardship - well for me that is not being able to pay Gas, LX, Council Tax, , Car and home insurance, Mobile (PAYG cos no landline) and our one luxury - the laptop dongle. All of which I had carefully put money aside to pay this week.

For the first time I am going to default on my bills -

RIGHT!!!!!!! enough of self pity. I got myself ahead once, surely I can do it again. Tasks for today.

1. Walk both kids to school (4 miles away and it is raining stair rods). Feel pretty sorry for my DS as he has been disturbed through the night with his ear infection

2. Walk back into town in time for appointment with bank to open another account at 10.30am

3. Walk to other end of town to get travel money to get me to collect emergency social fund. (only about a mile each way)

4. Buy nappies (baby now in last one so pray he doesn't need another till lunchtime)

5. Figure out he 3 buses needed to get me the dozen miles or so to collect emergency social fund at 12pm.

6. Get back into town early enough to put a fiver of petrol in the car before collecting DS at school at 4pm.

Sounds like a busy day - that is if DS is fit enough to go to school. If not I'm stumped because I'm not sure they will give me money for both of us to travel to this other town. Hopefully they will.

Wish me luck - and please keep your suggestions coming. You have no idea how yu lot are keeping me together.

Memorygirl