Benefits & bank charges, bank emptied my account

dmg24

rogerblack wrote: »

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

You are correct. The SSA refers to legal charges, such as a mortgage or secured loan, not bank charges.

DX2

rogerblack wrote: »

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.

Certainly from my understanding and the feedback from others in and around other forums like CAG (for example) it is used for exactly the problem the OP has.
http://www.consumeractiongroup.co.uk/forum/showthread.php?36790

dmg24

DX2 wrote: »

Certainly from my understanding and the feedback from others in and around other forums like CAG (for example) it is used for exactly the problem the OP has.
http://www.consumeractiongroup.co.uk/forum/showthread.php?36790

If you read it in the context of the Act, rather than a lay interpretation of it, it does not mean bank charges. Remember that people have been declined refunds of bank charges in this situation countless times, which would not happen if the law covered it.

DX2

dmg24 wrote: »

If you read it in the context of the Act, rather than a lay interpretation of it, it does not mean bank charges. Remember that people have been declined refunds of bank charges in this situation countless times, which would not happen if the law covered it.

I will bow out of this thread as my knowledge is far less superior than yours, must stop reading other forums aswell........

Wils35

rogerblack wrote: »

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

What Roger B said, Also ask for a print out of all the late payment charges or DD's returned to account unpaid, Im sure that they cannot charge you more than 3 times with these charges in a calendar month.

I had the same problem with direct debits, they tried charging me £90 for 1 month (£30 a charge x 3), i rang and discussed this with my bank and ended up paying them £15.

Had the same with my overdraft 'limit'

Was about a pound under my OD 'limit' and didnt know this when purchasing an item. This then took me over my OD 'limit' by about £2 and they had the cheek to try charge me for it.

They set a 'limit' as they see can see from income and outgoings that i could not afford to go over that 'limit' that they set, Why have a 'limit' then if your overdraft is not limited?? In other words they are giving you credit when they shouldnt be.

Amanda2920

Hi

Well I spoke to the bank, and discussed the whole senario going back to the start of it all, and you won't be surprised to hear they really didn't help, they didn't care that I said I have been corresponding with the claim dept in cornerstone or my financial situation, actually they done a breakdown of my money incoming - outgoing and worked out that after bills and food, left me with around £16 a week left!!! That's before you count clothes, school money or any money kids may need... They also told me that with future charges that are already in the system for the end of month to be applied its almost £300 apparently I'm being charged £6 a day and increasing as the charges go up, plus referral fees, unarranged overdraft fees and something else.
THEN
I THINK YOU'LL LIKE THIS I GOT 3 OPTIONS!!!
Bare in mind they worked out my money!!

1 pay back a min of £35 aweek to clear the balance.
2 they close my accounts and a debt recovery company takes over... Who will add more charges.. And CCJ me.
The best is
3 THEY WILL GIVE ME A LOAN AT A HIGHER RATE THAN NORMAL FOR £3850 OVER 5 YEAR @ £102.66 a month plus set up fee.. PAYING BACK IN TOTAL £6160

NO IS THAT HELPFUL BANKING OR WHAT

rogerblack

Amanda2920 wrote: »

Hi

Well I spoke to the bank, and discussed the whole senario going back to the start of it all, and you won't be surprised to hear they really didn't help, they didn't care that I said I have been corresponding with the claim dept in cornerstone or my financial situation, actually they done a breakdown of my money incoming - outgoing and worked out that after bills and food, left me with around £16 a week left!!! That's before you count clothes, school money <snip>

3 THEY WILL GIVE ME A LOAN AT A HIGHER RATE THAN NORMAL FOR £3850 OVER 5 YEAR @ £102.66 a month plus set up fee.. PAYING BACK IN TOTAL £6160

NO IS THAT HELPFUL BANKING OR WHAT

They are so nice!
Offering new loans!
Open a basic bank account somewhere else - make sure it's not part of the same group.
See the 'reclaiming bank charges' section on here.
Find out the complaints procedure for the bank, and go through that, so you can then go to the financial ombusdman.

Amanda2920

Morning

That's what I thought too!!! Just add a few grand more to it that should help... And were at the start of the month and they've already worked out £300 of charges to go on at end of month... Fair play talk about screwed up... I got the guy I spoke to to go right back and check the dates on the DD FOR the previous months prior to it coming out early on that month. Also all DD and standing orders were cancelled by me and the bank checked they were like 2half years ago to ensure nothing would be added. Yesterday the guy told me that there was still a standing order trying to come out every 3months and that each time it's declined then represented a week later so that has built at £76 every 3 months for like 3 years. I told him to check the account I have been using and see that it's has been coming out of that account. Not once returned.

I swear I might be poorly but I'll be damned if I'll let a bank screw me over anymore. They say avoid loan sharks but the banking system milking from the ones in hardship is taking P...

Surely offering a loan knowingly that I don't have income to meet the monthly payments is not in anyway responsible lending..

ALIBOBSY

No 2 is not correct, the bank are spinning tales there. Whilst I am not a fan of debt collectors in any way shape or form. They do not add extra charges or imediately CCJ people and strictly speaking the CCj has to issued in the original lenders name anyway.
If this got passed to a debt collector they would likely freeze the account and write asking for payment or an arrangement to be made, you could then make payments to them to clear the amount.

First thing you need to do is open a new unrelated account with a completely separate financial body and get you benefits transferred into there.

You need to cancel all direct debits and payments on the old account. I would them write (recorded delivery or delivered by hand) to the bank outlining your situation and asking them to close/freeze the account and making an offer of payment.

If this eventually got to court you could still fill in a form with income/expenditure on and they would only get a low payment anyway.

If in any doubt get CAB or another debt charity on the job to help with the letters, and do everything in writing to keep a record of it. Plus definately look into a complaint with the ombudsman.

good luck

ali x