Can They Do This

moggins

When I did my online banking this morning I discovered an unauthorised payment had gone out in cash. I phoned the bank immediately to find out where this money had gone and found that a debt recovery company had taken it for my credit card arrears.

I am surviving solely on benefits at the moment after having my baby in January and I believed that they were not allowed to remove money if you were only receiving benefits but the guy on the other end of the phone informed me that they had looked into this and the only money they were not allowed to touch was disability benefits. Surely this can't be right, the government give us just enough money to pay essential bills, food and clothing.

Believe me, I would love to be able to pay off my debts but keeping my children fed, clothed etc surely has to be a priority?

Can they really do this, have the banks,to get money that those of us who were unlucky enough to lose our jobs in this recession, just don't have, found another way to squeeze every penny out of us?

cycloneuk

If you owe money to a bank then they can take money from any of your other accounts with that bank to pay the debt.

dancingfairy

I thought banks could take money for their credit cards if it was with the same bank or sister bank as long as it was not benefit money (same as you).
I will have a look for Martin article on the right to -set off and see if that helps.
If it was a different company not related then we need to know if you have ever signed anything that means they are allowed to take money from your account.
df
http://www.moneysavingexpert.com/banking/setting-off
I think what you need to do is:
a) get a new bank account opened up not connected to anyone you owe money to and
b) see about getting the money back if it is benefit money - I think there is a letter of apportionment or something.
It might be worth phoning National Debtline for advice if you can.

DarkConvict

Debt companies cannot take cash out, they have to do direct debit or card payments to your account.

This is why you should only pay them via standing order.

Off-Setting is different, any debts with the same banking insisitution. I.e. RBS and halifax. Say you have £500 in a current account with RBS, and a defaulted £1000 credit card bill with halifax. They can take £500 (sometimes even the overdraft to) from RBS and move it to the halifax card. This off-sets the debt. It is highly problematic as every other creditor needs a court order, banks however can just pilfer money away without knowing if it is actually available. I.e. was it benifits, rent, mortgage payments, CCJ payments etc.

As far as i know, all benefits are protected as they are there to give a basic level of living, not topay debts!

dancingfairy

Indeed we need to clarify whether it was a) money being set-off or b) a debt recovery place that had been given bank details by the OP either for a direct debit or for a one-off payment - if it's this option and the OP only gave permission for a certain amount to be taken then can they apply to the bank for it to be recalled as it is an unauthorised Direct debit?/taking of money or c) someone else that has got hold of the bank details indirectly ie the bank details were given to the orignal company and have been either passed to a debt recovery company or it is the same company whose debt recovery arm has a different name.
df

UnderPressure

I agree with the above, maybe give the benefits agency a call tomorrow to clarify then see how you go about complaining, do this AFTER you have been an opened a bank account somewhere else then you can change your payments with them at the same time.

Im sorry to hear this has happened to you, I know to well how hard it can be when all of a sudden you end up with far less money from benefits than you were expecting its a nightmare it really is, the bank should not be allowing this to happen I would do some research and find out how you go about making an official complaint against them.

If you are short of food this week ring your local job centre and find out about applying for a social fund loan to tide you over, I have never had to apply for one but my understanding is that now it is all done over the phone and if approved you go along to your local job centre to pick up a giro cheque that you can cash at the post office, by doing this it may also be a good way of getting the benefits agenct to look into why and how your bank have simply helped themselves to your benefits.

Best of luck I hope you get it sorted out whatever you do make it top priority to go and open a fresh bank account tomorrow morning then at the least you are protected from this happening again........

moggins

Thanks for all the support and advice. I've definitely never authorised this company to take out any payments from my account. What makes it worse is that the DWP are taking much longer than expected to sort out my mortgage interest payments so I've had to find that for 2 months longer than expected too.

I can just about scrape through but I'm really upset about this, all I could give the children this summer holiday was one day trip to the seaside (and that was a budget version) and now I'm going to have to tell them this is cancelled too.

DarkConvict

If it was a card payment it is usually hard to get it back for some stupid reason the bank doesn't really do anything. In my opinion, it is an unauthorised payment and should be treated as fraud. I if took money out of your purse I would be charged with theft, yet debt collectors and even companies seem to get away with it, just by having your card number which is outrageous.

UnderPressure

moggins wrote: »

Thanks for all the support and advice. I've definitely never authorised this company to take out any payments from my account. What makes it worse is that the DWP are taking much longer than expected to sort out my mortgage interest payments so I've had to find that for 2 months longer than expected too.

I can just about scrape through but I'm really upset about this, all I could give the children this summer holiday was one day trip to the seaside (and that was a budget version) and now I'm going to have to tell them this is cancelled too.

I know how you fell, really I do our situation is quite similar to yours and it ca be heartbreaking I know, kids are resiliant a holiday wont bother them, we have not had a family holiday ever and our eldest is 8 this year, just cannot afford one and dont see the point of going into debt for it.

2 of mine are off to their grandparents for 10 days in a couple of weeks they see this as holiday and are really excited, makes me fell terrible as though they are missing out on something and it is all my fault

Dont sweat it, check out the local leisure centre they usually offer all sorts of activities in the summer holidays that need not break the bank, some even offer free swimming its a great way to occupy them doing something healthy and also mixing with different children they may not mix with at school.

We are very lucky where we live we have excellent beaches right on our doorstep not necessarily the weather though lol han in there the 6 weeks holiday I find can be really depressing sometimes, just bare in mind they dont need fancy holidays and this that and the other to know you love them honestly just set some time aside where you can do things they want to do they will be more than happy

What area do you live in? Maybe we can all find some things in your local area that need not break the bank?

kittiej

Darkconvict did you mean BOS and not RBS?

I thought RBS were Natwest and BOS the Halifax.

Just so peeps don't panic

moggins

I live in Gloucester, right in the city, I've found some things going on in the park (we have a two week festival) and we have a couple of good museums, I do have a family and friends railcard which lowers the cost of travel a bit but the entrance fees for attractions seem to have shot up this year and just wandering round a city centres shops isn't really our thing. Public transport here is a bit hit and miss, if you want to travel near the city it's fine but if you want to get out into the countryside then you're lucky if you can find a bus once a week.