Bank Charges takes all benefit

jillyiant

My son has all his income support wiped out by charges by Lloyds bank, it started when he went overdrawn by just a few pounds and got charged £20 a day till his next benefit went in, again was taken and he was still overdrawn. It is mounting up every month and he has no money every month. Is this legal. Is it best to try take a loan or just leave it hopeing it will work out eventually.

richard9991

jillyiant wrote: »

My son has all his income support wiped out by charges by Lloyds bank, it started when he went overdrawn by just a few pounds and got charged £20 a day till his next benefit went in, again was taken and he was still overdrawn. It is mounting up every month and he has no money every month. Is this legal. Is it best to try take a loan or just leave it hopeing it will work out eventually.

he should open a bank account with another bank to have his benefits paid in then pay lloyds so much a month to clear what he owes them he should also tell the Dwp what has been happening.

jillyiant

DWP have no interest, did inform them and asked for suggestions
but had no useful reply

p00hsticks

He could tell them he wants to open up a Post Office Card Account to get his benefits paid into - they shoudl be able to help him arrange that.

richard9991

p00hsticks wrote: »

He could tell them he wants to open up a Post Office Card Account to get his benefits paid into - they shoudl be able to help him arrange that.

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 bancrupcy of the beneficiary, such benefit shall not pass to any trustee or other person acting on behalf of his creditors.

** inalienable = not to be forfeited, or not transferable.

Basically they can't take your benefit money for overdrafts or debts, and if they have you can ask for it back.

If the bank staff argue, then insist on speaking to a manager - they know the rules.

jillyiant

Thank you so much, its much harder for him to sort out as he has selective mutism, but i will certainly write them a letter to see if they will do anything and include the info you have given me. Again thank you:T

munchings-n-crunchings

It depends on your branch, but I have normally found Lloyds TSB quite understanding.
If you get a helpful person, they can remove the charges as a 'Good Willing Gesture', although I understand the advice given by richard9991.

You could also be Third Party on your son's account. It just means filling out a form, and then, in branch, you can act on your son's behalf.

Regards

Munchie

atrixblue.-MFR-.

richard9991 wrote: »

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 bancrupcy of the beneficiary, such benefit shall not pass to any trustee or other person acting on behalf of his creditors.

** inalienable = not to be forfeited, or not transferable.

Basically they can't take your benefit money for overdrafts or debts, and if they have you can ask for it back.

If the bank staff argue, then insist on speaking to a manager - they know the rules.

wow i didnt know that i have been charged the same as OP's son and when calling them i got told there was nothing they can do as the charges were viable. i have been on income support(also get child ben and tax credits) since june last year due to illness and have been charge £100's of pounds mabe into the £1000's can i ask for all of it back dated i wounder under this act. would be nice to throw this at them and put a complaint in to the ombudsman for their lack of helpfullness when requesting the pay it back as they knew it was my benefits.

edit:
ive been through my online statements since last year and the have charged me a staggering £1580 since ive been on benefit in wich these charges has come out of my benefit of child ben and income support.

April84

Just open a bank account with another bank, have benefits paid in there, and ignore lloyds when they start trying to complain.
Thats what i did with halifax.

alwaysonthego_2

Op, don't take April's advice on ignoring the bank although do change your bank , I would really urge that he gets help from the CAB but if he is on JSA then he should not have to pay more than a token payment of £1 per month on unpriority debt.

Nick_B_3

Banks can take charges out of benefits because you sign up to their terms and conditions. This has come up many times and it is considered the charges in the legislation don't refer to bank charges. You can of course ask the bank to repay and if they repay it will be due to goodwill instead of the legislation.