Alternative benefit payment options

DanielD2008

Hi guys,

The account my benefit goes to is overdrawn and therefore when my benefit goes in it will leave me very much shorter.

I dont have an alternative bank account,only a prepaid Fair Fx mastercard.

Do I have any other options except from taking the loss ?

T.I.A

DanielD2008

Anyone ?

spendaholic66

You could try opening up a current account with any other bank online. But it may take a few days to set up. Otherwise it looks like you are going to have to take the loss. Remember that the overdraft will have to be paid off eventually and you may be charged if you overdrawn over a period of time if you have an un-arranged overdraft or one that charges a fee. I'm not sure if the benefits agency can send you a giro instead to be cashed at the post office, someone else may be able to help with that. Maybe ring them up, explain the situation and see what they can do. Good luck.

Pippin12

I think you need to set up another account (with a bank/Building Society not connected with your current account) asap, if this is going to be a recurring problem. A basic bank account would be best with no overdraft facility so you won't be tempted to go overdrawn again. You could then have your benefits paid in to this and arrange for your direct debits to be paid out from it. The most useful board for you to post on with problems like this is the 'Debt Free Wannabes' board.

pickpocketlocket

You need a Post Office account - I believe you can even get the application form from the JCP.

pmlindyloo

As above - basic bank account or post office account.

In the meantime you could try using your first right of appropriation by writing to the bank 7 days before you receive any benefit and ask them not to use it against any overdraft as this money is for............

See here for a fuller explanation.

http://www.legalbeagles.info/forums/showthread.php?17324-First-Right-of-Appropriation-stop-the-bank-taking-your-money

Just a short term thing though- you really need a separate account not linked to this current one in any way. (I'm thinking about credit cards, loans etc.)

You will then need to treat this overdraft as a debt and negotiate repayments (visit to CAB who could help you with this)

Adereterial

Call them at least three days before your payment is due, and ask to be paid by GIRO - you'll be sent a cheque which you can cash at a specified post office.