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Housing Benefit Overpayment-Told 5 Times

24

Comments

  • Oldernotwiser
    Oldernotwiser Posts: 37,425 Forumite
    neverdespairgirl wrote: »
    I can't see how this is theft in any way. You can commit theft if money is paid into your account, you know it's not yours and you aren't entitled to it, and you spend it anyway.

    In this case, however, the OP has done her best to notify the person responsible for the payment, and it appears she didn't decide to use it to pay her debts, but that rather, the bank unilaterally reduced her overdraft limit while the money was there.

    OP, it must be extremely annoying for you. I'd second the CAB suggestion.

    I agree that "theft" is too strong a word but isn't clearing your overdraft the same thing as paying your debts?
  • tom9980
    tom9980 Posts: 1,990 Forumite
    Part of the Furniture 1,000 Posts Name Dropper I've helped Parliament
    Oldernotwiser wrote: »
    I agree that "theft" is too strong a word but isn't clearing your overdraft the same thing as paying your debts?

    If you read the OP again it seems clear to me that the bank removed the overdraft facility they had thus eating up the overpayment cash. Banks have been doing that to people they now view as risky a lot the past few years. The OP didn't use it to pay it off, the bank simply withdrew the facility. I am sure the OP would have given it back but of course they have no overdraft available to them to pay it back now.
    When using the housing forum please use the sticky threads for valuable information.
  • WhiteHorse
    WhiteHorse Posts: 2,492 Forumite
    Thomas_The_Tank_Top wrote: »
    You have used money for which you are not entitled to service your debts.
    The OP has committed no crime.
    "Never underestimate the mindless force of a government bureaucracy
    seeking to expand its power, dominion and budget"
    Jay Stanley, American Civil Liberties Union.
  • neverdespairgirl
    neverdespairgirl Posts: 16,501 Forumite
    Thomas_The_Tank_Top wrote: »
    neverdespairgirl, my sweet. In bold, is exactly what the OP has done!
    Oldernotwiser wrote: »
    I agree that "theft" is too strong a word but isn't clearing your overdraft the same thing as paying your debts?


    I don't think it is the same. The OP said Lloyds removed the overdraft facility, not that she chose to pay a debt off with the money.
    ...much enquiry having been made concerning a gentleman, who had quitted a company where Johnson was, and no information being obtained; at last Johnson observed, that 'he did not care to speak ill of any man behind his back, but he believed the gentleman was an attorney'.
  • Oldernotwiser
    Oldernotwiser Posts: 37,425 Forumite
    tom9980 wrote: »
    If you read the OP again it seems clear to me that the bank removed the overdraft facility they had thus eating up the overpayment cash. Banks have been doing that to people they now view as risky a lot the past few years. The OP didn't use it to pay it off, the bank simply withdrew the facility. I am sure the OP would have given it back but of course they have no overdraft available to them to pay it back now.

    It's a very fine line though, isn't it? If you have a £5,000 overdraft with the bank and you pay in £5,000 then you are, effectively, paying off the overdraft; you don't actually have that £5,000 any more.
  • Orville
    Orville Posts: 1,906 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker PPI Party Pooper
    Oldernotwiser wrote: »
    It's a very fine line though, isn't it? If you have a £5,000 overdraft with the bank and you pay in £5,000 then you are, effectively, paying off the overdraft; you don't actually have that £5,000 any more.

    I would tend to agree in that the OP should not have paid this money into an account with an overdraft. The OP i assume is not stupid and therefore would know that the bank could close the OD at any time, unless it was for an agreed period by which if the bank have closed it early there may be some recourse for the op to get it re-instated again.

    Op i can see why you put it to one side just in case you got a demand through the door for the overpayment, but your critical error and what is ultimately your own fault is that you put this money in an account with an overdraft which could be closed at any time. You should have opened up a separate account with a different bank so this situation could have been avoided.
  • tom9980
    tom9980 Posts: 1,990 Forumite
    Part of the Furniture 1,000 Posts Name Dropper I've helped Parliament
    Oldernotwiser wrote: »
    It's a very fine line though, isn't it? If you have a £5,000 overdraft with the bank and you pay in £5,000 then you are, effectively, paying off the overdraft; you don't actually have that £5,000 any more.

    For me the fine line is in the difference between the OP actually paying in their own cash and the council mistakenly paying in funds. The OP didn't choose to pay it in, it was a mistake by a 3rd party that the bank are benefiting from that could leave the OP in a sticky situation.
    When using the housing forum please use the sticky threads for valuable information.
  • tom9980
    tom9980 Posts: 1,990 Forumite
    Part of the Furniture 1,000 Posts Name Dropper I've helped Parliament
    Orville wrote: »
    I would tend to agree in that the OP should not have paid this money into an account with an overdraft.

    The council paid it in not the OP.
    When using the housing forum please use the sticky threads for valuable information.
  • Orville
    Orville Posts: 1,906 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker PPI Party Pooper
    tom9980 wrote: »
    The council paid it in not the OP.

    Yes but equally the op could have taken it out each week/month and put it into a different account.

    Not rocket science is it?.
  • rogerblack
    rogerblack Posts: 9,446 Forumite
    Orville wrote: »
    Yes but equally the op could have taken it out each week/month and put it into a different account.

    Not rocket science is it?.

    And increasingly, banks are using their rights of offset to pay off one account with the funds in another, so this may not have helped at all.
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