Re-Claim Banks Overdraft Fees

karen.of.two

I am currently on Benefits, with two children and Claimin Job Seekers allowance.

I see some and was advised b the job centre that banks cant charge under the Banks Regulation in 1992, but unable to find this link again. To take to the bank tomorrow for charges they have put on my account.

Many thanks if anyone can point me in the right direct, as unable the link.

the_insider

Banks can charge under their terms and conditions. If you're struggling to pay for essentials because of the charges just talk to them. Legalese letters just get people's backs up. Ask them for help, you might be surprised!

bengal-stripe

karen.of.two wrote: »

.......was advised b the job centre that banks cant charge under the Banks Regulation in 1992

I'm afraid, you were given wrong advice as a bank charge is not a "charge" (assignment) in the meaning of the law.

The Government’s response
The purpose of the Social Security Administration Act 1992 Section 187 and section 45 of the Tax Credits Act 2002 is to prevent people’s benefit money being at risk by it being assigned over to a third party in settlement of a debt. It is not intended to prohibit the application of bank charges. Bank charges are in the nature of an expense, and are incurred by the holder of the account; tax credits and benefits are payable in order to help customers meet their expenses, and as such it is legitimate for banks to deduct charges from the balance of an account held in that bank, whether the money paid into the account comes from tax credits, benefits or other sources, such as earnings.

http://www.consumerwiki.co.uk/index.php/Benefits_and_the_Social_Security_Administration_Act