Disability Living Allowance and Bank Charges

TheDoctor1972

Hi there , I am writing a letter to my bank to recover bank charges that have come out of my DWP money for the past 3 years.

I need to know if Disability Living Allowance is covered as 'inalienable' under the Social Security Administration Act 1992 Miscellaneous Section 187.

I get two incomes you see, one Employment Support Allowance (which is covered in section 187), and Disability Living Allowance, which I am not sure is covered.


I don't want to write into the bank asking for my bank charges back and them say no because they have taken it off of my DLA.... but I am confused, as DLA is from the DWP and I can take it out when I request it at the bank.


Can anyone help me? Am I able to ask for my charges back or will they tell me to get lost?

Thanks!

Wywth

TheDoctor1972 wrote: »

Hi there , I am writing a letter to my bank to recover bank charges that have come out of my DWP money for the past 3 years.

I need to know if Disability Living Allowance is covered as 'inalienable' under the Social Security Administration Act 1992 Miscellaneous Section 187.

I get two incomes you see, one Employment Support Allowance (which is covered in section 187), and Disability Living Allowance, which I am not sure is covered.


I don't want to write into the bank asking for my bank charges back and them say no because they have taken it off of my DLA.... but I am confused, as DLA is from the DWP and I can take it out when I request it at the bank.


Can anyone help me? Am I able to ask for my charges back or will they tell me to get lost?

Thanks!

You have to pay your bank charges, just like any other bill.
It's what you get benefits for. i.e. in lieu of, or to supplement, other forms of income.

What next? Mr T can't charge you 50p for a tin of beans?

TheDoctor1972

I need the money to live on. My ESA is inalienable according to the legislation, my query is that if DLA is also.

Please refrain from sarcasm I asked for advice and help not to be antagonised.

bengal-stripe

TheDoctor1972 wrote: »

My ESA is inalienable according to the legislation......

This is an urban myth, which has been doing the rounds for quite a few years. Bank charges are not ‘charges’ in the meaning of the law, they are expenses.

HOWEVER by 'charges' they DO NOT MEAN BANK CHARGES. What is meant is things like attachment of earnings and charging orders.

The Government’s response

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.

http://www.consumerwiki.co.uk/index.php/Benefits_and_the_Social_Security_Administration_Act

TheDoctor1972

Thanks. Allow me to go into more detail then as I have a few more questions.

I applied for an overdraft to which the bank rejected me with. However, it was only until several months later I went overdrawn by a substantial amount that they let me take out about 50 pounds, they then charged me 35 pounds for this. The bank issue these charges 'incurred for banking services' and they are calling this overdraft, an 'Informal Overdraft Arrangement', which we haven't arranged at all. Years ago I was never allowed to go overdrawn and suddenly they do.

I don't understand why they let me have an overdraft when I have been declined and I haven't signed and agreed to one.

This got out of hand of course as I started to get further and further under the limit and my ESA was constantly being deducted to pay the charges. The charges went up from 25 pounds, 50 pounds, 75 pounds and even 100 pound charges. All which came out of my ESA and DLA, money I needed to live on. They had taken the bank charges and I could do nothing about.

I had to switch banks, I was in this constant battle of using the money I need to live and paying off these charges. As you can understand, I lost and am heftily overdrawn.


My query is that is this unlawful? I have suffered loss of money from my benefits, and to that end it took me months to realise that I could request my DWP money whenever I wanted it... HOWEVER when I took it out, again there was a charge. I have since moved to a new bank.


My thinking here is that if I am allowed to take every penny of the money I get from the DWP and they then take that out in charges (say I get £200 and they then take £50, I was entitled to that other £50 and now it is gone?), that makes me think that then they have stolen the money that was mine and I am entitled to claim it back.

Is this correct?

roonaldo

they have hardly stolen it, more like swallowed up. your benefits are not enough to cover the fee's/outgoings of the account as you have stated. wont you be better off talking to the DWP to see what they can do so you can obtain your money to another account or perhaps cheque?

dunstonh

later I went overdrawn by a substantial amount that they let me take out about 50 pounds

If it was a payment protected under a guarnatee scheme (debit card or cheque iwth guarantee card for example) then they have to pay it. They get no choice. Or it may be that they felt that bouncing the payment and affecting your character standing was more damaging and decided to pay.

It really doesnt matter why. The fault lies with you for spending money that was not yours. Trying to blame the bank for your lack of control is silly.

My query is that is this unlawful?

Luckily for you, in this country what you did is not unlawful. It is in some countries though. The bank have done nothing wrong either.

My thinking here is that if I am allowed to take every penny of the money I get from the DWP and they then take that out in charges (say I get £200 and they then take £50, I was entitled to that other £50 and now it is gone?), that makes me think that then they have stolen the money that was mine and I am entitled to claim it back.

Is this correct?

That is not correct. You were given the correct answer in post #4.

Do you have any debt with this bank any more or is it repaid?