Bank taking your Benefit? Quote this -

CarolnMalky

Can I ask a really daft question...does this apply to Trust Deeds/IVA's?

lucylu26

earwig wrote:

was it nat west by any chance

Hiya Yes it was Natwest.Sorry ben-e-fitt in my exitement I thought peter had posted this Many Thanks to the wonderful Ben-e-fitt!

I_love_boats

Hi

Having read these posts thought I would give it a go with my son's bank The Ha***ax.

He has been charged a total of £140 for one returned direct debit for £5. This is made up of an unauthorised overdraft (made up of there charges!) and
charges for the direct debits been returned again. Although he left the money in for the DD the bank swallowed it up in charges.

He recieves Long Term Incapcity Benefit for a serious heart condition.

I quoted the SS Act etc to be told that the bank were within there rights to take money from his benefits as he had agreed to the banks terms and conditions and had signed to agree to this.

Anyway after a long conversation they agreed to reimburse one charge of £40 as a 'goodwill gesture'

Said I was not happy and could I speak with a manager, the person on the phone said they had beeen advised by the manager that charges could be taken from benefits. I argued this point and was told I need to make a complaint to the complaints department but was informed by the person that they would say the same, that charges could be taken from benefits.

I am know waiting for a call from the complaints department.

Anyone got any ideas or further ifo that might be of help.

Thanks

peter999

I_love_boats wrote:

Said I was not happy and could I speak with a manager, the person on the phone said they had beeen advised by the manager that charges could be taken from benefits. I argued this point and was told I need to make a complaint to the complaints department but was informed by the person that they would say the same, that charges could be taken from benefits.

Lot of customer service people don't have a clue in unusual enquiries and their response will depend on what they know, are trained in, have experience of.
They are probably use to playing hard ball & not refunding charges easily.

They have probably NEVER had anyone quoting the law & trying to get a refund on this basis.
I hope it doesn't cause any problems with your account.

People on benefits are downtrodden enough & generally don't kick up a fuss in case it causes them further problems.

lil_me

I am unsure if Long Term Incapcity Benefit is one of the benefits listed as they can not deduct debt from. It is always worth kicking up a stink about as the worst they can say is no, but given the amount of choice people have now, they don't like loosing customers and may help.

Ames

There's also the point about unfair and unreasonable bank charges to back it up with, the reasons why so many people not on benefits have had refunds of charges.

LondonDiva

Does this also apply to instances where the account holder has gone into overdraft and is not making any attempt to pay off the amount owed, nor has contacted the bank to work out a repayment plan?

Not sure if it went to court that there would be a leg to stand on. This is income and you owe money - surely in the interests of sensible financil management, the first steps would be to sit down with the bank to freeze the interest on the overdraft and to start paying off the amount owed, rather than an expectation that it doesn't have to be paid back?

I_love_boats

Hi

To a certain extent I would agree, however, to be charged £140 for a an intial returned £5 direct debit is unreasonable. As for the overdraft and interest charges, the overdraft is made up of the banks CHARGES and not money actually spent.

The charges are the same for someone in receipt of benefit or for someone on £50k a year.

Most people have been forced to open accounts to get their benefit (cheaper for the government) The banks must be making a pretty penny from what are often the most vulnerable members of our society.

However, there are always going to be differing opinions about what is right or wrong about bank charges etc. I for one thing it is an absolute travisty that banks take monies from people who for whatever reason are on benefits.

The person on the phone said to me 'its not as though we are holding his giro or benefit book and not giving him his money, which is against the law' but in my opinion that's EXACTLY what they are doing.

kronas

question to you all, i withdrew £100 which made my balance go over, now they instantly ate up my JSA of £91 ofcourse there is a shortfall which i corrected later on, could i challenge them about the £91 or is it too late seen as the debt has been cleared ?

lil_me

Best of contacting teh bank kronas and asking them. I have know my local DWP office to contact a persons bank when they have used benefits to pay overdraft as the person then applied for a crisis loan, so the DWP lady got involved contacted the bank and they got access to their money.

Most people I know with debt issues have opened another account just for benefits to be paid into (most with post office) so this kind of thing doesn't happen, then they pay the money they take out into account to cover bills etc.