Do banks have the right to take dole money

unholyangel

Equaliser123 wrote: »

Can you provide some legal back-up for the "first right of appropriation"?

I'm in commercial law so don't get involved in this sort of thing but never heard of it.

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Even if your account is overdrawn, you can choose how any further money you pay into the account is used (for example to pay your mortgage or rent). This is called first right of appropriation. You'll need to write to them with new instructions each time you make a deposit

From: http://www.adviceguide.org.uk/c_banks_and_building_societies.pdf

Most common in relation to housing benefit but it does say it can be used for any deposits, not just housing benefit.

Theres also slightly more info here: http://www.corby.gov.uk/SupportingDocs/docs.supporting.released.2008-3.21193.Corby%20%20right%20of%20appropriation.pdf

Although one site does warn that if you do this, it warns your bank you are struggling financially and they may downgrade your account to a basic account due to this and they recommend opening a seperate basic account to stop this from happening.

dmg24

unholyangel wrote: »

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Even if your account is overdrawn, you can choose how any further money you pay into the account is used (for example to pay your mortgage or rent). This is called first right of appropriation. You'll need to write to them with new instructions each time you make a deposit

From: http://www.adviceguide.org.uk/c_banks_and_building_societies.pdf

Most common in relation to housing benefit but it does say it can be used for any deposits, not just housing benefit.

Theres also slightly more info here: http://www.corby.gov.uk/SupportingDocs/docs.supporting.released.2008-3.21193.Corby%20%20right%20of%20appropriation.pdf

Although one site does warn that if you do this, it warns your bank you are struggling financially and they may downgrade your account to a basic account due to this and they recommend opening a seperate basic account to stop this from happening.

This is not the law per se, but the lay interpretation of it. Whilst banks do tend to honour a right of appropriation request, strictly speaking the earlier interpretation given by Equaliser123 is correct.

unholyangel

dmg24 wrote: »

This is not the law per se, but the lay interpretation of it. Whilst banks do tend to honour a right of appropriation request, strictly speaking the earlier interpretation given by Equaliser123 is correct.

Didnt say who i agreed with. He asked for evidence of it and i was bored so i googled. But on a personal note (as you've probably guessed from my earlier postings) i dont think they should be able to deduct/freeze any money that a earnings arrestment wouldnt allow them to.

Unless of course they're sitting with 20grand in the bank and just not paying their debts (who would do such a thing i have no idea).