Bank charges taken from benefits

£MMA_2

Hi,can any one give me some advise please?
A couple of years ago When I was banking with Llyods TSB,I had a current account with no overdraft.A few times i went overdrawn by a few pence as i thought if the money wasnt in the bank the transaction would be rejected as i had no overdraft(and when i had applied for one they rejected it)So then I got charged £35 each time I went OD and one time it was for going over by12p.
So my question is how can they allow me to go OD and then charge me for going od by a few pence when no overdraft was arranged?also every time they charged me they took my child tax credit. They left me with no money and two children under 5 a couple of times.Can they take charges from benefits?And is there any way i can claim it back?

I hope that makes sense?
Thanks for any advice given.x

BLT_2

£MMA wrote: »

Hi,can any one give me some advise please?
A couple of years ago When I was banking with Llyods TSB,I had a current account with no overdraft.A few times i went overdrawn by a few pence as i thought if the money wasnt in the bank the transaction would be rejected as i had no overdraft(and when i had applied for one they rejected it)So then I got charged £35 each time I went OD and one time it was for going over by12p.
So my question is how can they allow me to go OD and then charge me for going od by a few pence when no overdraft was arranged?also every time they charged me they took my child tax credit. They left me with no money and two children under 5 a couple of times.Can they take charges from benefits?And is there any way i can claim it back?

I hope that makes sense?
Thanks for any advice given.x

To be honest your post makes no sense. You conducted financial transactions based upon the fact that the bank would reject them as there wasn't sufficient money in the account to cover the expenditure? You would have preferred them to reject the cheques or payments, in which case you would still have incurred charges for bounced cheques/defaulted payments

I don't believe that benefits are actually sacrosanct when it comes to expenditure, one can hardly expect a global bank, largely run by computers, to differentiate between types of money paid in.

Clearly you could follow the hardship route with a view to claiming back the bank charges, there are a multitude of individuals in this area who have experience of that sort, however I urge you not to use your original justification as the grounds for any claim

£MMA_2

No I dont think you understand.Sorry I did make it complicated.:D
I didnt base transactions on the fact that the bank would reject them. It was when I went to the shop and paid with my card not any cheques or pa .I didnt worry about going overdrawn as with anyother account Ive had if the money isnt there I cant spend it.
If the bank has told me I cant have an overdraft then i dont think its fair when they then charge me at least £35 pound for going overdrawn by a few pence when as far as I knew I couldnt so it wouldnt of been cautious of doing so.

And about banks taking charges out of benefits there is an artical on CAG about it saying apparently they arent allowed to do it . I was just trying to find out if thats the case and if anyone had any further info or advice about if it can be reclaimed.

dmg24

Surely you knew after the first charge that they would allow you to go overdrawn and charge you for it?

You can request that the bank sets aside any essential income (for rent etc), but this has to be done in advance.

Alpine_Star

£MMA wrote: »

And about banks taking charges out of benefits there is an artical on CAG about it saying apparently they arent allowed to do it . I was just trying to find out if thats the case and if anyone had any further info or advice about if it can be reclaimed.

It's a bit of a myth that benefits cannot be subject to bank charges I'm afraid. You can claim first right of appropriation for certain reasons but I think that dmg24 is right in saying that this has to be done in advance.

natweststaffmember

£MMA wrote: »

Hi,can any one give me some advise please?
A couple of years ago When I was banking with Llyods TSB,I had a current account with no overdraft.A few times i went overdrawn by a few pence as i thought if the money wasnt in the bank the transaction would be rejected as i had no overdraft(and when i had applied for one they rejected it)So then I got charged £35 each time I went OD and one time it was for going over by12p.
So my question is how can they allow me to go OD and then charge me for going od by a few pence when no overdraft was arranged?also every time they charged me they took my child tax credit. They left me with no money and two children under 5 a couple of times.Can they take charges from benefits?And is there any way i can claim it back?

I hope that makes sense?
Thanks for any advice given.x

How long ago was this?

jdx

I would suggest you have the benefits paid into another account as the bank will take charges 'owed' regardless of them being benefits.

You might be able to get it back if it's the first time but as far as charging you for 12p, some have complained that they have been charged when going over 5pence!