Overdraft Charges nearly = Income - Help

catz747

Hi All,

I'm taking a client (I'm her support worker) to Citizens Advice Bureau next Friday as she has got herself into a bit of debt (£500 ish overdraft). She rang her bank today (HSBC) and they were very unhelpful. Basically she is in receipt of Job Seekers Allowance (£91 per fortnight) and they are charging her between £100 and £125 per month.

Obviously she is available for work and needs to secure full time employment but is there anything anyone can think of that we can do in the meantime & does anyone know what CAB might be able to do?

Any input is much appreciated - Thanks

shameless-about-money

She needs to open a Basic Bank Account at another bank and transfer the payments across to that to stop the bank from doing this. In the interim she could get payment by giro and cash it at the Post Office.

There is a regulation within the Social Security Act of 1992 which prohibits banks taking their fees off any State Benefit and those monies can be reclaimed.

Will find the details and post here for you.

catz747

Thanks, we weren't sure if she could get another account since she made a mess of this one - would be good for her to get giros instead though - if taking money from her benefits it illegal, it's a bit weird cause they made her agree that they could have £20 a fortnight. I guess the thing is that she agreed.

Some of these debt people aren't very nice. I had a nasty loan company on to me cause they claimed not to have received my new direct debit details and the old debt bounced. They were really obnoxious and horrible

shameless-about-money

She would be allowed a Basic Bank Account anyway

shameless-about-money

Social Security Administration Act 1992
Miscellaneous
Certain benefit to be inalienable **

187- Subject to the provisions of this Act, every assignment of, or charge on-
(a)benefit as defined in section 122 of the Contributions and Benefits Act;
(b)any income-related benefit; or
(c)child benefit,
and every agreement to assign or charge such benefit shall be void; and, on the bankruptcy of the beneficiary, such benefit shall not pass to any trustee or other person acting on behalf of his creditors.

** inaliable = not to be forfeited.

---

Basically they can't take you benefit money for overdrafts or debts, and if they have you can ask for it back !

shameless-about-money

So, get the JSA by giro. Then send a letter to the Bank Manager quoting the above and demand the repayment of the monies immediately. They are not permitted to refuse since they are breaking the law.

catz747

Thanks I'll copy and paste that bit onto a sheet to print off, I'm not seeing her again until Monday - and hopefully she has given me the full story!

Thanks for your help Shameless:T

shameless-about-money

All of this really annoys me since the bank know jolly well that the income is State Benefit - yet they still persist in doing this sort of thing!

catz747

It annoys me their attitude and lack of willing to help. When I had to sort out my direct debit problem (or rather their direct debit problem) they were so **** rude to me. I don't honestly know how people cope, and most of the clients I work with are young, vulnerable in temporary accommodation.

fatbelly

Another alternative for a bank account is a Post Office Card Account.

And she wants the bank to refund charges. Plenty of info on the bank charges board. Can go back six years if necessary

Any other debts? Catalogues? Doorstep lenders?

catz747

fatbelly wrote: »

Another alternative for a bank account is a Post Office Card Account.

And she wants the bank to refund charges. Plenty of info on the bank charges board. Can go back six years if necessary

Any other debts? Catalogues? Doorstep lenders?

Thanks Will check the bank charges section too - I expect she has had quite a few in the last few years. Any other debts? Not that she has told me about, except there will be with the water company because she had to cancel the direct debit so the payment will be late but she should be able to sort that one.