Is a bank loan considered as savings?

travelmate2410

If i received a personal bank loan using my mobility entitlement as payment, would this be considered as savings by the DWP and Housing benefit authorities and would they need to be informed if the loan took my bank balance above the £6000 threshold?

many thanks

baza52

yes you would need to inform them

nottslass_2

travelled wrote: »

If i received a personal bank loan using my mobility entitlement as payment, would this be considered as savings by the DP and Housing benefit authorities and would they need to be informed if the loan took my bank balance above the £6000 threshold?

many thanks

I know some one who took out a loan to buy a new car and consolidate credit cards,he rang housing benefits and was told as long as he could prove that it was a loan for a purpose(as apposed to say an inheritance)then it was nothing to do with them.

dmg24

nottslass wrote: »

I know some one who took out a loan to buy a new car and consolidate credit cards,he rang housing benefits and was told as long as he could prove that it was a loan for a purpose(as apposed to say an inheritance)then it was nothing to do with them.

If the capital amounts go above £6,000 the LA/ JCP must be informed. The monies may be disregarded, but that is a decision for the authority, not the individual.

real1314

nottslass wrote: »

I know some one who took out a loan to buy a new car and consolidate credit cards,he rang housing benefits and was told as long as he could prove that it was a loan for a purpose(as apposed to say an inheritance)then it was nothing to do with them.

They were wrong. It would count whilst it was in the person's account. However, then spending it on whatever the loan was raised for should be ok, and not treated as deprivation.