Bank Charges not applicable if you're on benefits!

dalesrider

Pandafan wrote: »

Hi - I've just sent this letter to my bank:


"My only regular income consists of income-related benefits. (Working and Child Tax Credits, Disability Living Allowance for my son, and Child Benefit.) Therefore, the effect of cancelling an overdraft effectively equates to the appropriation of benefit money, as does applying bank charges for failed payments. You will be aware that this is illegal under the Social Security Administration Act 1992, Section 187, which states:


. I'll keep you posted!

I have bolded one of the benefits.

You pretty much only get this if you or partner are working.... Therefor you have other funds that can be drawn against.
If wages are going into another banks account and you are trying to use said act to avoid paying charges.... It will not be viewed in a good light. They WILL know you are lieing....

As other have said, you have it wrong and are on a hiding to nothing.
Might even mean they close the account. As the banking relationship has broken down.

pmduk

How can cancelling an overdraft be considered the appropriation of benefit money? If that were the case nobody on benefits would ever get an overdraft?

The logical extension of your argument is that any form of repayment to a bank is illegal.

In your position I'd make sure I have a backup bank account as your existing bank is unlikely to want to continue dealing with you.

antrobus

If "applying bank charges" amounted to the "appropriation of benefit money" and was contrary to s187 SSAA 1992, it would also mean that applying any kind of charge would similarly be an 'illegal' appropriation of benefit money, which would mean that a bank would not be permitted to apply any debits against benefit funds, which would mean that you would not be able to spend the money.

I think that would defeat the object of the exercise.

Biggles

Trolling ?

simongregson

Your best bet is to open a new basic bank account and arrange for your benefits to be paid there.

Then negotiate with your existing bank, you are in a much stronger position than relying on this legal argument.

I do agree with you with regard to your son's DLA - I receive DLA for my son and it is very clear from the information that we received that it is in effect his money, but paid to you as his guardian/parent. However there is no point in getting into an argument with the bank or users of this forum - just open a new account somewhere else!