Santander question (on JSA benefits)

Bennyfromthebronx

Hi all, I have used MSE for a while now but thought it might be time to register!

I was wondering if you could help me..

Firstly, I am on income based JSA and I am 25 pound overdrawn on my santander bank account.

I had to go to the county court over a housing issue, but I didn't take sufficient evidence to be able to have a free hearing.. So I had to pay 40 pounds. I had the evidence but it was at home and I needed to get a hearing ASAP so I had to put the money up. Later the next week I went back with the evidence to claim my 40 back.

They sent me a cheque for 40 pounds, the predicament I am in is that I am 25 overdrawn with Santander. so If I cash it I will only have 15 pounds of the money.

Because I paid for it indirectly out of my benefits am I eligible for all of the money? because obviously the bank will take the 25 I owe them how else can I cash it? I've heard of the first right of appropriation where if you owe the bank money they cant take it from your benefits.. so really I paid for the court costs with benefit money therefore it's indirectly my benefits money being returned in the form of a cheque?

Thank you!

cifpower

As far as the bank is concerned this cheque is not "indirect benefits". It is a simple lodgement a portion of which will clear the overdrawn balance/

davethorp

Your options are basically:

1. Pay it into Santander in which case as you say you will come out with just £15 but you wont owe Santander any more

2. Open an account elsewhere and pay it in there. In which case you will come out with the full £40 BUT you will still owe Santander £25

3. Take the cheque to a cheque cashers who likely charge you about £5 for cashing the cheque in which case you will come out with £35 BUT again you will still owe Santander £25

Personally I'd choose option 1

pmduk

Surely you would want to repay the overdraft before it costs you any more money?

Bennyfromthebronx

Of course I'm going to pay the santander debt as soon as I can. But at the moment I am strapped for cash..

Could I ask santander to make an arrangement that I pay 5 per week or so?

TheBanker

You can ask them, and they should be sympathetic to cases of financial difficulty. However they may not agree, it depends on the specific circumstances.

What caused your account to go overdrawn in the first place, was it Santander's fees or was it your own spending?