Bank taking your Benefit? Quote this -

exil

We're getting off track here.

The OP is based on a false reading of the law. It says you can't charge or assign a benefit. This means, unlike wages, they can't have amounts deducted at source. You can have wages arrested to pay fines, maintenance, back taxes etc, but not benefits.

This is NOT the same as saying that people on benefit can't be made to pay bank charges, repay loans etc which seems to be the general impression here.

Smickan

Thank you so much for all your advice I remember reading it on here somewhere, but couldn't remember where. With the help of EdinboroughLass I was able to confirm I wasn't going mad and hopefully can get some action against Natwest for the £112 they owe my friend who is in real dire straits!

Thank you so much once again!

azza87

Hi, this is a fantastic thread. Thanks for informing us all. I have a question though. Does this apply to bank loans?

In september last year i took out a £1000 loan. Then in september i lost my job and had no income. I am currently on £46 per week with job seekers allowance and my loan payments are £37 per month. I Rang up about this to the bank because in the terms and conditions of my loan after 14 days of employment the bank is supposed to pay the monthly payments for you until you find employment. I was sent a claim form and since sending it to my last employers head office i haven't had it back.

Because of this the bank have taken 4 months payments out of my bank so i've only had around £147 to live on for the last 4 months.

Will i be able to get this money back as mentioned in the opening post?

Thanks.

cazkenton2003

Hi all.
A quick question.

The bank sent me a letter 2 weeks ago, notifying me of £60 bank charges that were due out of my acct last Saturday.
Them charges took all of my IS (and more) rendered me penniless for the weekend.
A D/D bounced because of empty bank acct (another £38)

I got £109 CHB and CTC today and the bank decides to charge me another £105.
I wasn't told or notified about these last 2 charges.
The £105 was supposedly for 3 debit card transactions, yet when I looked at mini statements, I had sufficient money.

the bank have agreed to place £52 as a 'good will' gesture back into my bank acct, but it isn't enough to clear the overdraft...so am still penniless.
I have 2 kids to raise and £6 in my pocket.
I have another D/D going out at end of the week, so that'll be another £38.

Are banks legally allowed to take charges out of benefits? Even if it does cause severe hardship?

Failing that, I'm going to have walk 7 miles tomorrow to the job centre to get a crisis loan.

Someone please help and advise!

Chrysalis

cancel all direct debits, after that I dont know, but DDs are more trouble then they worth its an easy way to get charged. The penalties for paying bills late is less then having a direct debit bounce.

azza87

bump...

Sorry!

azza87

bump......

Anthillmob

can someone tell me if a bank was to take someones housing benefit for bank charges etc that had been paid into their account is this too unlawful? its a situation that has arisen with a claimant at work and i said i think it is but id try and find out.

cifpower

HB is included in the legislation as it is an income-related benefit. I have spent the last month trying to get this money back and have now involved my MLA.

Gimmiedadough

cifpower wrote: »

HB is included in the legislation as it is an income-related benefit. I have spent the last month trying to get this money back and have now involved my MLA.

Good luck on the HB.

The Act doesn't just restrict itself to income-related benefit:

"187- Subject to the provisions of this Act, every assignment of, or charge on-
(a)benefit as defined in section 122 of the Contributions and Benefits Act;
(b)any income-related benefit; or
(c)child benefit"

I would be interested to know if it covers DLA or not.
I had a look at the Act here:

http://www.opsi.gov.uk/acts/acts1992/Ukpga_19920004_en_8.htm#end

Unfortunately it's not very clear to me from the earlier sections referenced whether DLA is included -- I'm not sure if DLA existed yet in 1992. In Section V it mentions Sickness Benefit, Disablement Pension and Disablement Gratuity etc. which seem pretty much ancient history now.

I'm not able to concentrate on the whole current legislation book someone posted a link to.

exil wrote:

This is NOT the same as saying that people on benefit can't be made to pay bank charges, repay loans etc which seems to be the general impression here.

Well if that's true we're wasting our time.

I think some expert opinion on this would be good. Thanks to the OP for opening it up for debate anyway.