Bank Charges and Benefits

Kestrel75

Hi
I was told on a forum that banks cannot take charges out of your account if your receive benefits. I was wondering if this is true, and if so, which benefit(s) does it apply to and also which charges can the bank not take from your account?
Many thanks in advance

catieeb06

Kestrel75 wrote: »

Hi
I was told on a forum that banks cannot take charges out of your account if your receive benefits. I was wondering if this is true, and if so, which benefit(s) does it apply to and also which charges can the bank not take from your account?
Many thanks in advance

Untrue and therefore no it doesn't.

BugsyBrowne

Kestrel75 wrote: »

Hi
I was told on a forum that banks cannot take charges out of your account if your receive benefits. I was wondering if this is true, and if so, which benefit(s) does it apply to and also which charges can the bank not take from your account?
Many thanks in advance

:rotfl::rotfl:

opinions4u

Myth.

Government clarified this about four years ago.

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.

A concise sob story and polite request may get a bank to refund a charge though.

innovate

Oh no. Memories of jebus197 (from that "Hidden bank charges" thread that thankfully vanished the other day). Those around at the time will now what I mean.

Hooloovoo

innovate wrote: »

Oh no. Memories of jebus197 (from that "Hidden bank charges" thread that thankfully vanished the other day). Those around at the time will now what I mean.

I was just thinking about that.

jebus197 claimed his bank told him that since it was a late benefits payment that caused the charges that the bank had to refund them and indeed should not have charged them in the first instance.

Of course, I don't think his advice was the most reliable [:rotfl:]

Kestrel75

Thanks all for your help.
xx