Single mother on benefit and harship + bank penalty for overdraft

motherofone_2

Hello all,

I see many people are in the same boat as me. Sorry you have to go through this!

I'm a single mother on benefit. About three weeks ago I decided to buy online some winter clothes for my daughter.Went to Ebay and without realising I made 17 transactions over the limit of my £100.00 over draft with Halifax!!!!

I sincerely thought I was using the housing benefit money (so I could replace a week later), but to my horror, that month the housing benefit came a week later than usual.

Anyway, I rang Halifax and managed to talk to the local branch manager. I explained my situation and I beg for compassion. He (according to him) sent a letter to the Head Office on my behalf asking for such compassion, and the replay is a NO! I was wise enough to change back very quickly to avoid Halifax to swallow the money from child benefit and child tax credit.

I changed to Lloyds and now to my horror I learned from the National Debt Line ( I have to ring them for advice as I also have behind TWO gas and electric bills), that Halaifax and Lloyds are the same company! So now I need to change bank again.

The Natioanal Debt Line was useful but not really helpful as I still dont know what to do. Please advice me. Halifax is now really making my life a misery, they want their money (the money my little girl and me need to eat).

I know some people will say I was irresponsible for not checking my bank account before using the card, but it is these things in life I never dreeamt was going to happen.

Please help. I'm not sleeping and it is affecting my daily routines.

Thanks for your thoughts


Motherofone

esmerellda

(((((((((((((((((((hug)))))))))))))))))))))))))

that month the housing benefit came a week later than usual.

Were you informed this would be the case in advance ?

If not I would call the council benefits dept and tell themdue to them paying you late you have incurred bank charges. They should refund them, will try and find the right info bits for you. mmm can't find it but the DWP part is http://www.dwp.gov.uk/publications/dwp/2003/frm/07_exgal.asp#k I would assume the HB / council depts have similar policy.

Of course that doesnt count if they informed you in advance.

motherofone_2

Thanks Esmerallda!

Housing Benefit dates has been erratic since receiving it. They claim they pay at the end of every month but it always come at any day at the beginning of the month and now is coming at the end of the month (at the very beginning when I moved to this property, it came at the middle but never at specific day)

Thanks for the link, but it is working. Can you please resend it?

Many thanks for your time. I do appreciated it

esmerellda

mmmmm yep the links broken sorry havent used it for a fair while

This is the bit I was pointing at for DWP/CSA payments - I don't know if it will apply to HB but its worth asking the HB dept why it was late and explaining you incurred charges because of it and going from there.

58 When payment of benefit has been delayed due to Departmental error, the customer may become overdrawn on a bank account or incur fees. In such cases, the special payment should be equivalent to either

• the interest payment calculated by the Department for the delay (see paragraph 88 et seq) or
• the amount of interest and any fee that is charged by the bank whichever is higher.

motherofone_2

Esmerallda,

Once again, thanks for the time, but for some reason the link you placed are not working. I'm really interested to find out more about this.

esmerellda

http://www.whatdotheyknow.com/request/14108/response/37393/attach/4/Special%20Payments%20Guide.pdf

That works but its concentrating solely on Child Maintenance - and just mean it as an example that these kind of policies are in place to help in delayed payment and maladministration situations.

Your HB you need to find out if its a monthly payment or a 4 weekly payment as that will have a big effect on dates.


If you get no joy from that route we can go for Halifax/Lloyds again on hardship grounds.

esmerellda

On an entirely seperate note, as you are in similar position to me (just less kids lol) have you considered ditching banks going for a post office card account and a prepay debit card for paypal type purchases ?

motherofone_2

The National Debt Line told me about it, and yes, I'm considering. Havent done it yet because my little one is being sick.

Esmerallda, on another topic, do you know if Lloyds can take the benefit payments to pay Halifax? Because of my daughter being sick, I havent being able to go to town to open a new bank account.

esmerellda

they can but I dont think they will. If you are worried you could do an appropriation letter to make sure its not taken.

We should work on a hardship letter too, but let me know what HB office say first.