A new 'tougher' thread... and so it continues

prepareathome

This is what your link says -


Social Security Administration Act and Tax Credits Act

The two Acts of Parliament that govern how benefits are paid are the Social Security Administration Act 1992 and the Tax Credit's Act 2002. Both of these have clauses which apparently make it unlawful for banks to impose bank charges on benefits:

Social Security Administration Act 1992 Section 187:
—
187.—(1) Subject to the provision of this Act, every assignment of or charge on–

(a) benefit as defined in section 122 of the Contributions and Benefits Act; [3(aa) a jobseeker’s allowance;]

(b) any income-related benefit; or

(c) child benefit,

and every agreement to assign or charge such benefit shall be void;

Tax Credits Act 2002 Section 45:
—
45. Inalienability

(1) Every assignment of or charge on a tax credit, and every agreement to assign or charge a tax credit, is void;


HOWEVER by 'charges' they DO NOT MEAN BANK CHARGES. What is meant is things like attachment of earnings and charging orders.

Although there is some ambiguity, if you took a case to reclaim bank charges to court based on s187 of the Social Security Administration Act 1992 or s45 of the Tax Credits Act 2002 the court would almost certainly find against you.

No one is saying that the banks have the right to take money from benefits, only that you can't use the Social Security Administration Act 1992 or the Tax Credits Act 2002 to stop them. Money taken from benefits is unlawful - but unlawful by virtue of the Unfair Terms in Consumer Contract Regulations 1999 and the common law on penalties in contracts , not under the Social Security Administration Act 1992 or Tax Credits Act 2002 (unfortunately).
[edit]
Government Response to Petition

“We the undersigned petition the Prime Minister to compel the High Street banks to obey the law on state benefits.”
Details of Petition:
“It is government policy that people on state benefits (income support, tax credits, etc) have their benefit paid into a bank account. All High Street banks impose charges on banking accounts for going overdrawn, not having funds to cover a direct debit,etc. In the case of accounts which have money from state benefits payed into them , such charges are contrary to section 187 of the Social Security Administration Act 1992 or section 45 of the Tax Credits Act 2002. However, the High Street banks continue to ignore this legislation. This petition is to request the Prime Minister to compel the High Street banks to obey 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.


By its nature of being unclear a court might just not find against you but it would be a brave person who took them to court.

3v3

VJsMum - sorry to hear about your Dad, hope he recovers speedily.

retromother wrote: »

Hi everyone, I'm a long term lurker who has been fascinated by this thread. I'm about to leave my demanding job as a beauty buyer to become a SAHM of my two boys. I'm so excited yet very apprehensive too!...

Welcome to the tread Sounds like you have a plan! Good luck with the transition, you'll get lots of advice, ideas and support on here.

meme30

Had a lovely 'mooch' around a flea market this weekend, came home with a large wooden chest (filthy!) which is just what I have been looking for. Will be great for grandchildrens toy's. Scrubbed up well. Best of all it was only £5! :j
Made my first ever Bread and Butter Pudding yesterday. Ingredients felt expensive (no cheap double cream to be had) but it divided into six large portions so I will freeze two and eat the spare this week when we have a 'Soup and a Sweet' day. Tasted great was really chuffed!

VJsmum

Thanks so much for all the kind wishes - you're the best!

Seems Dad has a blood infection - I have to admit I wondered about the "stroke" as this has happened before when he was displaying stroke - like symptoms. Hospital at that time were saying "we think it's a chest or a urine infection" when all the time he had this massive red, throbbing leg. Eventually I said "well, I'm no doctor but could it be his leg ulcer?" Turned out it was - i've obviously missed a vocation somewhere! :doh:

So, still waiting, but it seems like I don't need to do a mercy dash. I will be more use later on in the week if they send him home.

So, don't quite know what to do with myself today. Not much tidying got done after all, yesterday, so maybe I should focus on that. Might do some baking - that always relaxes me.

Have a good day all - and thanks again.

D&DD

oh bless your heart VJ'smum it must be awful being so far away:( Here's hoping he's sorted and home very soon XX
I tend to manically clean when I'm waiting for news *only time my house EVER gets scrubbed lol*

Just having 5 mins sit before I have a mammoth mince cookup..again! I was going to make a bread pud with any bits I had left but could only find one slice that needed sorting out..won't get very far with that and didn't want to use fresh bread so I was a good girly and whizzed it down into breadcrumbs with some parsely and chives :A shall I polish my halo now????;)

Showing eldest how to batch bake his shepherds pies but will have to confess about the lentils do you think he'll forgive me

grandma247

I have finally caught up again.
My apologies for the depressing posts last week. I was feeling very down because of a virus I have been fighting for weeks. I should not read depressing emails when I am feeling off. Thanks Mardatha for the voice of reason

My kids will be ok with the changes as they are all os and I decided for-warned is for-armed so I told them about the changes so they can be ready. DH and I chatted about the mortgage again so I think we will be forgoing the holiday abroad we were going to try for this year and get our heads down and pay off as much as we can. It is not a lot in the great scheme of things but we will have to work at it to get it done.

vjsmum I am glad your dad is getting the help he needs. I hope you are feeling less stressed now.

mardatha

Some days I need a voice of reason meself, yesterday was def one of them ! xxx
Life is a river isn't it, it never stays still, just constantly flows on, always try to remember that during the bad times.

grandma247

Thank you mardatha. I feel a lot better today so I hope I have finally seen the virus off now. Its sunny here :T

wen3

Morning (well just lol)

Have been to the Dr's he now thinks I have a infected gland but as I am in no pain has not given me antibiotics which is fine by me. He did say if I feel worse to ring and he will sort some out for me. Have made a curry from the left over chicken. Have renewed the house insurance. Just a few more bits to do then a well deserved cuppa. Hope every one is okay and glad to here your Dad is better.

[Deleted User]

Aren't daughters amazing? Both Hubby and I have had birthdays over the weekend and both the girls came home to visit. The eldest one produced a beautiful balsa wood mobile of flying seagulls that she had made for us to hang in the stairwell, when I say made, she started with a sheet of plain balsa wood and cut and glued etc, it is stunning. The youngest who is a GP has been sat on the sofa this morning knitting baby bootees for friends who are going to be parents, and , is currently under the car with her dad fitting new headlight bulbs before she drives back.. She has just called me and said get out the sewing machine Ma and I'll alter your curtains before I go. Wow, is that multi tasking or what? I am a very lucky me!