No income, can't access money in bonds

Advizor

Been asked advice:- Friend has £40.000 in bonds which mature next summer but was unaware that T&C's changed so no longer accessible until maturity. (Was expecting a penalty/loss of interest). Has no income apart interest on bonds (just enough to cover council tax) and failure to budget adequately means that current account is down to zero! Rent due within the week, council tax, phone and electricity to follow. No cash for food etc. No employment prospects. Any suggestions?

le_loup

The T&Cs will not have changed during the lifetime of the bond.
Only hope is to approach the bank to ask for special dispensation. Unlikely, that's why fixed rate bonds pay more the variable rate.

ses6jwg

The bonds we offer (Santander) stipulate "no withdrawls/ early closure" except under "exceptional circumstances".

If your friend can demonstrate extreme hardship, it is likely they will close the bonds but he may earn no interest/ pay a hefty penalty

McKneff

Why no JSA/Esa or any other benefits.

olly300

McKneff wrote: »

Why no JSA/Esa or any other benefits.

Due to the currency symbol Advizor has used in his/her post I presume the person isn't a British Citizen so thinks they are not entitled to them.

I would suggest that the person confirms whether they are immediately and if they are contact all parties that they owe money to telling them that they are applying for benefits.

Advizor

Many thanks for all your replies. Friend is British but doesn't qualify for Income Support due to amount of capital. Wasn't applying for JSA as wasn't actively seeking work. Now injured so can't work. Is applying to bank for exceptional circumstances but they weren't hopeful. Any idea how long it would take for bank to make a decision on this, ses6jwg?
P.S To olly 300: I used a pound sign but confirm it is 40,000 GBP.

johnmoney05

Do you think you can spare some cash for him first?

olly300

Advizor wrote: »

Many thanks for all your replies. Friend is British but doesn't qualify for Income Support due to amount of capital. Wasn't applying for JSA as wasn't actively seeking work. Now injured so can't work.

Can't work at all, or can work but in a different job to normal with lots of help?

In this country lots of people with disabilities work so as long as your friend can work doing something with adjustments because of his disability/injury then he can sign on for JSA. For example if he is on crutches he can still use his hands so can sign on as long as he is looking for work. However his country of origin would be taken into account.

If he is legible he needs to sign on asap - http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Employedorlookingforwork/DG_10018757

If the link doesn't work it's the direct.gov.uk website under jobseeker's allowance

jonesMUFCforever

He can probably try that old chesnut that it was missold to him LOL

mcdaly

If it's in the T&Cs doubt he has much to stand on. It costs quite a bit of money to the banks to cash bonds early (as they had other plans for the money!) which is why many of them now do not allow any withdrawals expect in the case of the account holder dying. Maybe lodge a complaint on hardship grounds but by the time it gets dealt with the bond will probably mature anyway!

Nothanks

Gotta head with Jones on this one.

Your friend could claim mis-selling. Claim politely and reasonably that that part of the Ts & Cs wasn't explained to them, and while it is in the small print that they signed they feel the advisor had a responsibility to let them know the key limitations and he/she didn't. (I'm assuming this is the case, of course, not suggesting your chum lies!)