Bank taking your Benefit? Quote this -

mussgo

Surely the easiest way would be to open either a PO card account or one of the basic bank accounts and then you could transfer what you need to over for the DD's etc, get allowances paid into this, and use it ONLY for this.

I know someone who does this with the PO account, every week draw the lot out and at the same time put what they want into a clydesdale account (its in partnership with the PO so money can be put in and out of it).

This way the person has control over thier spending not the banks!

tiamai_d

LOL, mussgo, that is making the assumption that I get tome to do all of that! I barely manage to go to asda!

mussgo

Ok point take, re the time factor, she is a cash type person, this works for her. However many of the basic bank accounts are also on line and phone....THEREFORE you can do all the money moving at your convenience.

tiamai_d

I know, I guess its just the whole actually going and doing it thing. My husband is with the same bank, and he has his pay, the mortgage, pretty much ALL the bills with the exception of food shopping and petrol, come out by direct debit. Just the way that does work best for us, no chance of missing payments etc, and it HAS been working, for him!

My own fault really, but still, if they are not actually allowed to take this money from these benefits (given the fact that DLA is for my son and pays for all the traveling we have to do and what not) then yes, I will try and stop them from taking it.

Thanks!

harveybobbles

My OH has been on IB for 18 months and have had a charge almost every month by ShatWest for overdraft charge, returned DD charges etc... Will they be able to claim all of these back over the last 18 months any quicker than if we claim for the full 6 years worth?

zena2105

From what I can gather, it is not stating that banks aren't allowed to Charge you penalties, for O/d, unpaid items, but saying that they can't take it out of any benefits money..

..so technically they could still charge, just with a bill through post....??? WHich on benefit money you could agree to pay back, and would eliminate getting more charges, as they haven't taken it from your money....


Am I right???

Morglin

Yes, you have to pay the charges/overdraft, but banks are not allowed to take the whole of your benefit, thereby leaving you without means of sustenance.

They should negotiate a timetable of repayments that's managable for you.

Lin

sallyinlancs

I have had ANOTHER £27 taken out of my account today for unplanned overdraft charges. I am on Income Support. I phoned the bank to ask for a refund and Lloyds TSB tell me they do not have any facilities to make refunds on charges - you have to tell them in ADVANCE of the charges being taken from the account.

krisskross

So what you are all saying is that the banks cannot take charges out of benefits. This honestly makes no sense as there can be hardly anyone in the country who does not claim a benefit of some sort.

Surely it would be much simpler to open another account for the benefits to go into. Make sure it never ever goes overdrawn by having no DDs etc out of it. Draw the money out and pay bills etc with cash. Doesn't even have to be a 'real' bank account. A savings account with a sort code and account number will do fine. Then sort a reclaiming/repaying plan with the original bank. Might take a couple of hours to sort out but worth it I would think.

gbhxu

Just a word to say that quoting act doesn't work with LloydsTSB.

You just get the standard letter saying that they think the charges were fair and that they're waiting until the court case is finished.

Currently waiting for a reply from the Financial Ombudsman Service regarding a refund