Benefits swallowed up by bank charges

BigDebtBoy

Hi guys

I was hoping someone had some advice, I went £20 overdrawn on my account a bit back (account said available balance £21 so i took £20 out but next day it said I was £19 overdrawn (available balance should have been £1 but a visa transaction had not been taken out apparently.
anyway On friday the bank took £90 odd in charges and my esa goes in today of £180 leaving me with just £90 after the charges have swallowed up half of it, I went to the bank today to try and sort it but they would not budge then tried to get my esa payment stopped/reveresed and paid a cheque instead but it was to late
so now after bills etc I am left with next to nothing for food etc for the next 2 weeks, is there anything I can do? is the bank allowed to leave me with nothing after their scandelous rip off charges, its enough of a struggle as it is without this

binnie

I don't know the answer to this, but I hope you get it sorted out.
I thought they werent allowed to take your benefits and use for bank charges, but maybe I'm wrong.
I hope someone will come along and help you with this, good luck.
xx

Carl31

You could try calling the bank and asking them nicely to refund some of the charges? but at the end of the day, you knew the t+cs of the account when you opened it, the bank dont care where your money comes from hence i dont think the fact is benefit money will help your case in any way.

pmlindyloo

For the future you need to either a) open a new basic bank account and have your money put into it
b) write a letter - for template see here: http://www.southhams.gov.uk/20101015_right_of_appropriation.pdf
asking them not to take any fees before you withdraw your benefit.

Probably a) is best.

I do agree that if you grovel enough - 'I am so sorry I didn't realise that I had gone overdrawn - such and such happened' ....... they may refund the money.

The all guns blazing approach does not work, (in my opinion,) softly softly, quivering voice usually does the trick. Have done this and it worked. I started the conversation....'I have been so stupid'.

Swallow your pride and your opinions and give it a go.

Good luck!

PS I did it over the phone - much easier I think.

Sueinbirmingham

It used to be argued that the Social Security Administration Act 1992 prevented it, but the government issued a statement to the effect that this was not what the Act said. I don't know if there have been any Appeal court cases on it, though.

Hammyman

Sadly the government are wrong and the social security act specifically said that benefits payments cannot be used to pay bank charges. It was in very plain english as well. Because the govt said this, it makes getting your money back using the SSA 1992 extremely difficult.

robus

Not sure I understand this.

The OP thought that he had £21 in the account, withdrew £20 but forgot about a £20 payment that he had already made with his debit card?

Obviously that would make him £19 overdrawn.

To get to that stage, the OP's management of his own money is not too clever!

So in effect he takes £20 from the bank without their permission or authority.

Then when he has to pay it back plus fees for getting himself into that position, he complains!

Every customer knows what the T&C's are relating to their bank account. So why is he surprised that the bank want the £20 back plus fees to cover the interest charged and time spent by the bank.

Presumably he expects the bank to say nothing, write off the £20 debt and not bother charging him.

The OP is totally at fault for not controlling his own finances. A lesson well learned for the future.

an4rew

First of all people on Benefits should not be allowed to go into the red.
£90 for £20 sounds bloody brilliant.

But lets not blame the bank

Equaliser123

Hammyman wrote: »

Sadly the government are wrong and the social security act specifically said that benefits payments cannot be used to pay bank charges. It was in very plain english as well. Because the govt said this, it makes getting your money back using the SSA 1992 extremely difficult.

That's not correct at all. The Act says that charges cannot be applied to benefits. "Charges" are a legal term relating to an encumbrance (or security interest or mortgage) over the benefit.

jamespir

robus wrote: »

Not sure I understand this.

The OP thought that he had £21 in the account, withdrew £20 but forgot about a £20 payment that he had already made with his debit card?

Obviously that would make him £19 overdrawn.

To get to that stage, the OP's management of his own money is not too clever!

So in effect he takes £20 from the bank without their permission or authority.

Then when he has to pay it back plus fees for getting himself into that position, he complains!

Every customer knows what the T&C's are relating to their bank account. So why is he surprised that the bank want the £20 back plus fees to cover the interest charged and time spent by the bank.

Presumably he expects the bank to say nothing, write off the £20 debt and not bother charging him.

The OP is totally at fault for not controlling his own finances. A lesson well learned for the future.

have you ever made a mistake ? i bet you have so dont be so nasty

jamespir

ring your back and see what they say op ignore the high an mighty brigade