Unauthorised payments

mistymemo

Hi

Are banks allowed to take money out of an account for debts even if the person is unemployed and in financial difficulties?

I am currently living on Jobseekers and found that Halifax had taken £40 of my jobseekers money without my permission from my Natwest account. I am furious and upset by this. Thats my food shopping gone.

What are my rights if I even have any? :-(

Many thanks

nuttyelle

im not sure, however that doesnt sound right. unless you've previously given them your card details, as i know a bank cant stop a card payment going through. otherwise get straight down to your branch in the morning and get it recalled! i had to do it when sky decided to start taking money at random... oh and the lovely npower, who i had switched from months prior and cancelled the DD.
i know if you are on benefits you can do letters to your own bank stating they cant take money out of your benefit money for charges/overdraft etc as its intended for living costs/rent/food etc etc

i hope someone can offer further advice but id get straight to your bank.
p.s if its a previously cancelled DD halifax has taken upon itself to reapply / instate, your bank is once again in the wrong as mine were to keep letting npower set it up to mine.
good luck

mistymemo

Thank you for your advice :-) I will go straight to the bank first thing tomorrow morning. I think banks should be more careful and do their research before grabbing money out of people's accounts. It feels like stealing in broad daylight.

Thank you again :-)

pebbles88

Hi Mistymemo

forgive me asking, but do you owe any money to Halifax?? as Natwest is under the same group (RBS) they may have exercised the offsetting rule.. which is where if you are behind with any payments, they have the right to take the funds from any other accounts you have with them. Its awful, they did it to me once.

if you do owe them anything, i would open another account with a bank that isnt associated with any that you might already bank with and get any benefits/wages paid in there.

HTH.

pebbles88

sorry just seen that you are unemployed. if you cant open a basic bank account anywhere else, ask to open a post office account, or they may be able to issue giro cheques til you get something else sorted (perhaps use someone elses account).

from personal experience RBS/halifax/natwest are horrific when it comes to offsetting, and they wwill be watching all your accounts now to grab what they can. make sure you look after yourself and get your benefits paid somewhere else ASAP.

mandi

Hi Misty

I am almost sure the bank cannot do this .

There are some very good posters in this section who will reply tomorrow DMG 24 & Oldernotwiser give brilliant advice .

In the meantime pebbles suggested a giro . Contact your benefit office 1st thing tomorrow , and advise them , they will then arrange for it to be sent to you .

Hammyman

I looked at this a bit ago. There is a section under the Social Security Act which states that income from benefits cannot be withdrawn by the banks to pay charges and overdrafts on that account. When you go in tomorrow, point out that the money was from benefits and they've broken the law.

Thats assuming they've not just paid a DD you have set up with a creditor which is a different kettle of fish.

tcr_3

Beg to disagree with Hammyman. This one's been discussed many times before & most people come to the reluctant conclusion that the banks can charge against benefit payments. So agree with the other contributors who suggest you should open a new basic bank account (or Post Office Card Account) for benefit purposes, or have your benefit paid by giro meantime.

You can apply for a Crisis Loan to tide you over until your next benefit payment is due.

pebbles88

Hammyman wrote: »

I looked at this a bit ago. There is a section under the Social Security Act which states that income from benefits cannot be withdrawn by the banks to pay charges and overdrafts on that account. When you go in tomorrow, point out that the money was from benefits and they've broken the law.

Thats assuming they've not just paid a DD you have set up with a creditor which is a different kettle of fish.

yes they are not supposed/allowed too... but it doesnt seem to stop them none the less. they dont care

Hammyman

tcr wrote: »

Beg to disagree with Hammyman. This one's been discussed many times before & most people come to the reluctant conclusion that the banks can charge against benefit payments.

Social Security Act clearly stated different. I can't be bothered to go look it up now (see my leaving orange thread in mobile phones) but it was there in clear plain english.

OrkneyStar

pebbles88 wrote: »

Hi Mistymemo

forgive me asking, but do you owe any money to Halifax?? as Natwest is under the same group (RBS) they may have exercised the offsetting rule.. which is where if you are behind with any payments, they have the right to take the funds from any other accounts you have with them. Its awful, they did it to me once.

if you do owe them anything, i would open another account with a bank that isnt associated with any that you might already bank with and get any benefits/wages paid in there.

HTH.

This sounds a bit confused.
Last I knew was Bank of Scotland/Halifax/Lloyds were part of one group (along with some others) but Royal Bank of Scotland/Natwest (also along with others) were a separate group ?
Also agree that a Post Office account would be a good idea. The whole not being able to take benefit money thing is correct in theory, but it still happens in practice (something to do with bank saying money is money once it is in there....even though there is clearly a list of where credits come from!).