Bank charges… Section 187 of the Social Security Administration Act 1992???

dantheman1975

Looking for a bit of advice if anyone can help… My sister is a lone parent with three children, she works part time (20 hours a week) and gets working tax, child benefit and a modest amount of housing benefit, all these are paid into her bank on a weekly / monthly basis. At the start of the year she went overdrawn on her account then in February the bank took the charges for her going overdrawn. This occurred when her rent was due and as you’ll appreciate it caused a lot of problems, unfortunately she’s now got into the cycle of going overdrawn each week to meet the necessary bills and then getting hit with charges the following month.

I did a bit of research and found reference to the ‘Section 187 of the Social Security Administration Act 1992’, which apparently prohibits banks from taking moneys from peoples account who are in receipt of benefits. I’ve found many contrasting interpretations of what this legislation means and am wondering if my sister contacts the bank would she be able to get the charges reduced or cancelled.

Can anyone shine any light on this legislation?

Wywth

dantheman1975 wrote: »

Looking for a bit of advice if anyone can help… My sister is a lone parent with three children, she works part time (20 hours a week) and gets working tax, child benefit and a modest amount of housing benefit, all these are paid into her bank on a weekly / monthly basis. At the start of the year she went overdrawn on her account then in February the bank took the charges for her going overdrawn. This occurred when her rent was due and as you’ll appreciate it caused a lot of problems, unfortunately she’s now got into the cycle of going overdrawn each week to meet the necessary bills and then getting hit with charges the following month.

I did a bit of research and found reference to the ‘Section 187 of the Social Security Administration Act 1992’, which apparently prohibits banks from taking moneys from peoples account who are in receipt of benefits. I’ve found many contrasting interpretations of what this legislation means and am wondering if my sister contacts the bank would she be able to get the charges reduced or cancelled.

Can anyone shine any light on this legislation?

It's an urban myth

Source: http://www.moneysavingexpert.com/reclaim/bank-charges

dunstonh

Can anyone shine any light on this legislation?

Just confirming what Wyth is saying. It is an urban myth and not correct in the way it is being presented.

dantheman1975

thank you both for the feedback, was worth a try

meer53

She should still contact her bank and let them know that she's struggling to pay her bills, they will probably refund some of the charges if she's not been refunded any before. But warn her that once she's had the conversation with them, they will expect her to manage her account and not get into the same situation again.

Get her to post a SOA so that she can see where she might be able to cut down and avoid any more fees.

dantheman1975

thanks for the feed back... it looks like we may be able to tackle some of the charges using the hardship arguement, does anyone know which address is best for contacting natwest?

ILW

Surely it cannot be much to clear the overdraft.
Can you not give her the cash on condition she is more careful in the future?

dantheman1975

Unfortunately I haven’t been able to help her financially these past few months though I’m hoping to be able to help her out next month. However we’re going to try and have a go at the bank, I’ve read quite a few positive stories on here so might as well give it a go.

still looking fro the best address to send a letter to natwest if anyone can help