Benefits & bank charges, bank emptied my account

Amanda2920

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HELP....

I have been fighting charges on bank account, I think it's called SNOWBALLING.. it started with 2 DD payment coming out early and for double the amount, over a bank holiday! They got returned on the Friday, my money got put in on the Saturday and payment should have gone out on the Tuesday. If it had gone out on time the funds would have Been there, so by Saturday morning my money went in I got £70 charge and all small DD's over the next few weeks were being returned. And upto £105 a day, plus extra charges at end of month.

I am disabled single mum, after having businesses in past now on DLA AND I/S struggling. My bank told me to open another account for my benefits to get paid into which I done... After almost 3 years, last week my money got paid into account, and 2 days later I went to take money out for bills rent so on and my card is blocked and balance is BIG FAT 0... I have no money to live on and can't afford to spend hour on hold to dept at bank from mobile. Oh also the account that has the charges, bearing in mind no activity on the account with charges after approx 6-8 weeks at the start then all DD were cancelled. Within that time it hit over £900 in charges, anyway now the charges that have occurred in nearly 3 years are £3500+.. HELP ANYBODY PLEEEEAAASSSEEE

rogerblack

Ok - unhelpful bit first.

You should never have any bank account you rely on in an emergency with the same banking group as an account with debts.
The bank have the right to take from one account to satisfy their debts.
http://www.moneysavingexpert.com/banking/setting-off

Second - crisis loan.

http://www.dwp.gov.uk/publications/specialist-guides/technical-guidance/sb16-a-guide-to-the-social/crisis-loans/

As I understand it, you may be able to apply for this at your local jobcentre in addition to over the phone, and get a postal order, payable at your local post office.

Third - open a basic bank account somewhere else.
http://www.moneysavingexpert.com/banking/basic-bank-accounts

Fourth - if you can - get to your bank branch, and be very polite, but request they sort this out. They should not be taking essential funds from someone in hardship. Do not scream and shout, but be prepared to do stuff they will not like, such as standing around talking to customers about your situation.

Do bring up that you will complain to the ombudsman about this.

Ideally, you'd have contacted the bank before about the charges, and they have in writing that you're struggling, and in hardship.

Finally - reclaiming bank charges. If you are in hardship, this is still possible.
http://www.moneysavingexpert.com/reclaim/bank-charges

Good luck!

DX2

Section 187 of the Social Security Act 1992
There is an Act of Parliament which over-rides banks taking charges from your account if you are in receipt of any of the following benefits.

• Income Support
• Tax Credits
• Child Benefit
• Job seekers allowance
• Incapacity benefit
• Disability living allowance
• Attendance Allowance
• CSA payments
• Other DWP payments.
These social security benefits are granted to stop hardship and are designed to meet basic day to day needs, and are exempt and are protected under the Social Security Administration Act 1992 sub section 187. from arrestment in terms of section 187 of the Social Security Administration Act 1992 (see Enforcement of Civil Obligations in Scotland, Scottish Executive report, at paragraph 5.245).
Section 45 of the Tax Credits Act 2002 is an identical provision to the said section 187 of the 1992 Act. This stipulates that the banks can not apply any charges to money received as benefit, and any such charges are unlawful and therefore disallowed.

.............................................
http://kentfreedommovement.ning.com/forum/topics/bank-charges-not-allowed-on

rogerblack

DX2 wrote: »

.............................................
http://kentfreedommovement.ning.com/forum/topics/bank-charges-not-allowed-on

However.
There are no charges for this account being applied.
Another unrelated (in law) debt is being satisfied by the transfer of funds.

Hence, I question if this applies.

Also - see http://forums.moneysavingexpert.com/showpost.php?p=37726402&postcount=16 - which refers to a response from the governmnt saying this doesn't actually apply to bank charges.
'charge' in the law is not used in the sense of bank charges, but the legal meaning.

Amanda2920

Hi, thanks for replies,

1st YES THE BANK KNOWS I'M IN FINANCIAL HARDSHIP.... they also know I had a decent business background before I got ill and how poorly I am now.... Every penny they've taken off me has been benefits and I am today going to contact the FOS FOR HELP... because I've made official claim branch can't/won't deal with it, the staff there actually have been good to me really. They have seen me deteriate in last 3 years and know I average 3-4 hospital appointments a week. ( that's another story can't get my travel costs paid).

What I need now is a way forward today, not only about this latest set back but the past 5 years.... I have big problems filling out forms just remember the question and writing simple answer without drifting off into whole different direction and then missing the main point... I can't do sit and wait for CAB OR ANYTHING, as either paralysis kicks in, my face drops and swells leaving me unable to talk and disoriented . If I could deal with it quick and easily on phone that'd be ok, I may not remember much of conversation it'd be ok tho as long as it was sorted. but same as above if I'm just on hold for ages.

krisskross

Banks can and do take bank charges from any money into the account. Benefit money is just income, same as any other money and there is nothing to stop banks applying charges to it.

The 'charges' people get confused about are charges in a legal framework. Rather like money lenders used to take benefit books from people to ensure they got their money.

My advice would be to open a post office account for the benefits to be paid into, NO DDs at all, pay everything in cash. Discuss how to pay back to the banks and ask them to stop adding charges/interest.

Amanda2920

I will open new account today, the money wasn't paid into that account, it got paid into another account which they told me to open for my money to be paid into!!!!!

AND THERE IS NO WAY ON THIS EARTH I'M PAYING THEM OVER £3500 for there ever increasing charges, when they could have helped at the start they knew the date a DD was due out, they chose to take it on a Friday rather than the following Tuesday when it was due... I asked them to sort it there and then.. Like you said you don't live long enough to make everyone elses mistakes but you live to fight something that is wrong. If I'd been and spent £3500 and refused to pay it back that's one thing(I'd be wrong) but I've not every penny is charges and at first I was allowing them to take my benefits but you tell me anyone that can afford to keep chucking £105 a day down drain to try and get straight and bills still weren't paid. That's why money gets paid into another account

rogerblack

Amanda2920 wrote: »

I will open new account today, the money wasn't paid into that account, it got paid into another account which they told me to open for my money to be paid into!!!!!

Make sure it's with a different banking group, or this can happen again!
See the above 'set-aside' article.

rogerblack

krisskross wrote: »

My advice would be to open a post office account for the benefits to be paid into, NO DDs at all, pay everything in cash. Discuss how to pay back to the banks and ask them to stop adding charges/interest.

I find it really annoying I can't setup a 'overdraft limit' - at 50 quid.
I'm not worthy of an overdraft - fine.
However, I want to not incur unauthorised overdraft fees if I screw up, and accidentally bounce a DD.

Amanda2920

Reply to Rogerblack

Hi think I'm tired now, but I don't understand what you mean about if law applies or not??

Sorry! I am interested tho, because I used to be very diplomatic and always ensured my facts were right, it's just getting harder to do it now especially in writing and forms... Since opening the new account for benefits, I've not once gone overdrawn on it, but the one with charges is just accumulating at a rate of about £70-£80 a month.

rogerblack

Amanda2920 wrote: »

Reply to Rogerblack

Hi think I'm tired now, but I don't understand what you mean about if law applies or not??

Sorry! I am interested tho, because I used to be very diplomatic and always ensured my facts were right, it's just getting harder to do it now especially in writing and forms... Since opening the new account for benefits, I've not once gone overdrawn on it, but the one with charges is just accumulating at a rate of about £70-£80 a month.

The above link about not being able to apply charges to benefits - it's incorrect, as I understand it.