can a bank take benefit money

gemz5623

at a loose end no idea what to do hoping some one can help..im on income based job seekers allowance and i get my benefit payed into my mams account coz there was problems with mine and coz she dont use hers she allows this and i transfer every two weeks to my dads so i can take it from there coz she dont have a pin number and lloyds have honoured a payment from my dads account of nearly £300 and with out me knowing the bank has taking MY money!!!!!!!!!!! now im under the impression that under the social security admin act of 1992 the bank is NOT ALLOWED TO take benefit money for charges or debts!!! and have rang the bank and have explained that is my dads debt and not mine and wondering if theres anything i can do...the bank are saying that coz the transaction says it came from my mams account i cant have my money back coz it dont have the DWP ON IT..but if they looked on my mums it clearly states that the payment has came from dwp and was transferred to my dads account...!the bank had informed my father that its the company who has taken the money is to blame.. but this bank honored it...!!!which is strange coz normally they wouldnt honour a £10.00 payment let alone nearly 300 quid and like i say this is a debt but not a debt of mine... im nackard basically..this money is mine and now have nothing to live on!! help!!!

jackyann

The bank had no way of knowing that.
I would talk to your local CAB / Welfare Rights group asap, ask for help explaining the situation.
Then set up your own basic bank account (they will help you if you have difficulty)
It is always a good idea to have a separate basic account for any benefits that no-one else has access to.

FBaby

Surely your dad is responsible? He needs to sort out why the bank took his money and give back what he owes you.

In any case, you now know that transferring money in and out of accounts that are not under your name is not a good idea and you are better looking at another way to get your benefits.

gemz5623

TY...any bit of info is helpfull...i have spoke to bank in regards to this but they are not budging with the fact the transfer dnt have the DWP sign on it!!

gemz5623

thats what we have been trying to do, this company should not of taking the money to begin with so theres blame on all sides, bank, company dad but they are all blaming each other and yes im aware that i have to do that like i say i do have my own account but with the same bank there was issues trying to sort that out..so not really having a great time with lloyds

Housing_Benefit_Officer

So there was a cash transfer from your Mums account into your Dads account rather than a direct payment from the DWP into your Dads account?

If so there is nothing you can do.

[Deleted User]

Hi,

you can't blame the company that took the money, they weren't to know it was your money.

You need to get your money back from 'bank of dad'.

ani_26

As far as i'm aware, you can still have any benefit except housing benefit paid into a Post Office card account. They've no other facility with them, i.e. you can't use direct debits, pay in money, have a salary paid in etc. You have your benefit paid in, you withdraw your money. That's it.


http://www.adviceguide.org.uk/wales/benefits_w/benefits_benefits_introduction_ew/payment_of_benefits_and_tax_credits.htm#h_payment_into_an_account

Types of account

You can have benefit or tax credit paid into a standard bank or building society account (for example, a current account), a basic bank account (also called an introductory account) or a Post Office card account. Basic bank accounts are easier to open but do not allow you an overdraft. Some standard bank accounts and basic bank accounts will allow you access to money at a post office, but you should check with your bank or building society.


A Post Office card account can only be used for payments of benefit (but not Housing Benefit), state pension and tax credits. You cannot pay any other income into a card account. You can withdraw money from the account at any post office using a card and PIN number, but you cannot get access to the money anywhere else. If you want to open a card account you must first contact the Department for Work and Pensions (if you get a benefit or state pension) or HM Revenue and Customs (if you get a tax credit).

https://www.gov.uk/how-to-have-your-benefits-paid

Post Office card account

These accounts are specifically designed for you to receive benefits, state pension and tax credits.
No other income can be paid into your Post Office card account, eg your salary.
Open a Post Office card account

To open an account you’ll need:

• to contact the office that pays your benefit
• proof of identity, eg a passport
• proof of where you’re living, eg a recent bill with your name and address on it

If you don’t have a bank or Post Office card account, contact the office that pays your benefit to find out how to get your benefits paid.

May be of use to you in the future?

mikey_bach

or have the benefit paid by simple payment
if the OP post was genuine

https://www.gov.uk/simple-payment

The bank would not talk to the OP, as he is a third party.

SnooksNJ

Would getting the £300 off your Dad and then opening up your own account work?

bengal-stripe

Bank charges can be taken off benefit monies, as they are not charges (in the legal meaning of the word) but expenses.

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

In your case, you do not even receive benefits (issued by DWP) but payments which your mother sends to your father and which you eventually use. (Which is in the strict definition 'money laundering' as it hides the source of the funds.)

Get yourself an account first and take it from there.