Bank accounts/benefits

Lilac1978

This is my first time posting not sure if i am posting in the right place.
My bil is on benefits due to health problems.He has got himself in to some money trouble and now is struggling to pay rent,bills etc and has no money for food because the bank account his benefits are going into is overdrawn and they will not allow him any money due to being overdrawn-Are they allowed to do this as we have had to help him with his rent this month even though he gets it paid????

On our advice which i have read on here he has opened another bank account and changed all his benefits over but we are so angry with the other bank as he has had nothing to live on is there anyway we can try to get some money back?

Thankyou

john539

Lilac1978 wrote: »

This is my first time posting not sure if i am posting in the right place.
My bil is on benefits due to health problems.He has got himself in to some money trouble and now is struggling to pay rent,bills etc and has no money for food because the bank account his benefits are going into is overdrawn and they will not allow him any money due to being overdrawn-Are they allowed to do this as we have had to help him with his rent this month even though he gets it paid????

On our advice which i have read on here he has opened another bank account and changed all his benefits over but we are so angry with the other bank as he has had nothing to live on is there anyway we can try to get some money back?

Thankyou

This thread may help:

Bank taking your Benefit? Quote this -

rogerblack

I don't believe the above law applies.

('charge' has a technical legal meaning - it's when - for example - someone gets a charge against your house for outstanding debt - it means you can't sell it without repaying that debt)

Anyway - absolutely the first step is to change bank accounts.
If you can't do this immediately, ask the benefits people to stop paying into your bank account until you give them another bank.
Or give them the bank account details of a friend who can pay the money once or twice till it's setup.
I'm unsure if they will issue giros still.

https://forums.moneysavingexpert.com/discussion/1530191 - see this also.
You absolutely must ensure that the new bank account is with a different banking group, or they can 'offset' - take money from one account to repay debts with another.
This is a list of banking organisations, and the brands they trade under. I was unable to find a nice list on MSE.
http://www.moneywise.co.uk/banking-saving/current-accounts/how-protected-your-bank

bengal-stripe

Unless your BIL changes his attitude to spending, the same thing will happen with the new bank. He's obviously has spent more than he has incoming, hence the account got overdrawn. Don't forget, despite the new account, that overdrawn money has to be paid back somehow, leaving him with even less available money.


One first step would be to arrange with the Housing Benefit people to pay the landlord directly. This would remove the temptation to spend the rent money on other things.

Lilac1978

Thankyou for all your replies

john539

rogerblack wrote: »

I don't believe the above law applies.

('charge' has a technical legal meaning - it's when - for example - someone gets a charge against your house for outstanding debt - it means you can't sell it without repaying that debt)

It's a "claim" on the benefit.

It's worth a try.

http://forums.moneysavingexpert.com/showpost.php?p=18071971&postcount=141

Lilac1978

He has opened a bank account with the same bank and said the bank has advised him to do this to get his benefits paid in to it??????? And he seems to think they won't offset the money??????

john539

[

Lilac1978 wrote: »

...because the bank account his benefits are going into is overdrawn and they will not allow him any money due to being overdrawn

... he has opened another bank account and changed all his benefits over but

I don't think they are allowed to claim all his money leaving him with nothing to live on.


The admin people in the banks won't know of this law.

You said he opened another bank account with different bank, now you say it is with same bank.

~Beanie~

Lilac1978 wrote: »

He has opened a bank account with the same bank and said the bank has advised him to do this to get his benefits paid in to it??????? And he seems to think they won't offset the money??????

They will. Even if they say they won't, is it worth the risk? He needs an account with a different bank.

DaisyFlower

They probably do have the right to off set so he needs to approach a different bank for an account and make a payment plan to pay back what he owes.

If the benefit money has gone towards his debt, surely its better he owes family than adding to the interest etc that the bank will be charging for unauthorised borrowing.

He then needs to have his HB paid directly to the landlord so that he keeps a roof over his head and needs to get realistic and ensure his outgoings match his benefits otherwise he'll repeat the pattern with the new bank and end up in a worse mess.

Lilac1978

Thanks for your replies i assumed he would have opened a bank account with a different bank!?( I would have!)