Bank charges for people claiming benefits

rds60h

Morglin wrote: »

Not sure why people on benefits shouldn't pay bank charges, to be honest. :think:

We all have to learn to live within our means, wherever our income originates.

Lin

Because they are in hardship !!
If your are made redundant and have monthly standing orders and direct debits that now total more than your benefits, even if in the process of trying to negotiate different payment schemes you can quickly attract bank charges and interest and those charges and interest compound pulling you further into debt.
Benefit payments are set as a minimum living income and so does not accommodate the ability to pay existing higher level outgoings.

Morglin

To be honest, I've been in hardship many times, over the years, and because I couldn't afford bank charges, I made sure I never went overdrawn!

Not easy, I know, but in the days before bank accounts, we HAD to live within our income.

And, if those that go overdrawn don't pay their own charges , then everyone else will end up paying for it - including a lot of poor people.

Someone on NMW, with benefit/TC top up can be on less than someone on full time benefits - to start means testing level of bank charges wouldn't be feasible.

Being poor is not a new thing, you know.

But, if anyone doesn't want their benefits swallowed up by bank charges, it is simple - just open a basic bank account, with a different bank, (no checks made) and arrange for all benefits to be paid in there.

Then, just sort out with the charging bank how to repay the debt.

Lin

rds60h

Morglin wrote: »

To be honest, I've been in hardship many times, over the years, and because I couldn't afford bank charges, I made sure I never went overdrawn!

Not easy, I know, but in the days before bank accounts, we HAD to live within our income.

And, if those that go overdrawn don't pay their own charges , then everyone else will end up paying for it - including a lot of poor people.

Someone on NMW, with benefit/TC top up can be on less than someone on full time benefits - to start means testing level of bank charges wouldn't be feasible.

Being poor is not a new thing, you know.

But, if anyone doesn't want their benefits swallowed up by bank charges, it is simple - just open a basic bank account, with a different bank, (no checks made) and arrange for all benefits to be paid in there.

Then, just sort out with the charging bank how to repay the debt.

Lin

If you had been on a reasonable wage and had been paying Hire Purchase for somethings that you could afford while working and then get made redundant there is very little you can do about it, and HP and Credit is the norm for many people. You have been fortunate not to have been overdrawn or in credit debt and I know being poor isn't a new thing and nor is serfdom but we are returning to it !!
I know if you are older (I am 58) that it might not appear that people are poor but by today's standards many are in the equivalent position of the like of the Jarrow Marchers of 1938.
As for your suggestion of "just" changing bank and opening a basic bank account, they do actually do checks !
Please don't think I am having a personal go at you, because I have seen some of the excellent advice and help you have given to some others on here, it is just that in my opinion this time you have got it wrong.
The thing that you need to remember that it is those who are overdrawn or borrowing from the banks who are the main contributers through the high charges and interest rates to the running of the banks and as usual many of those who cannot afford it are the ones paying the highest charges.

nannytone_2

if i was in that position, the first thing i would do is cancel the direct debits!
the priority is rent/council tax and food.
you then contact the creditors, tell them you have cancelled the DD and mmake arrangements for a reduced payment.

you have to be mad to allow a HP direct debit to go through when you have no/little money for food.

OK it may ruin your credit ... but that will happen anyway as benefits dont pay for debts

StormyWeather_2

A few months ago I drew out cash for shopping. When I got to the till I forgot, automatically used my card and it went through. It shouldn't have, there wasn't money in my account to pay for it. Fortunately, I managed to rectify the next day and put cash back before the payment cleared.

That mistake could have cost me £25 if I hadn't been able to get to a branch. That would have knock on effect the next month. Vicious circle.

I would argue that if a bank account is funded purely from benefits that they shouldn't allow it to go overdrawn.

nannytone_2

my accoubt cabt go oberdrawn.
but what about DD's. isnt there a charge for any when there are insufficient fubnds?
all mine go out on the 1st of the month, that was i can makes sure that the money is in the account easily, rather than having payments coming out mif month that i might forget

StormyWeather_2

nannytone wrote: »

my accoubt cabt go oberdrawn.
but what about DD's. isnt there a charge for any when there are insufficient fubnds?
all mine go out on the 1st of the month, that was i can makes sure that the money is in the account easily, rather than having payments coming out mif month that i might forget

I didn't think mine could. If the card had been rejected at the till that would have reminded me. I accept it was my mistake but if I'd lost £25 in one go would have been difficult.

Bounced DDs incur a charge and so does going overdrawn. The only way to avoid charges is cancel them and then deal with the utility company/creditor direct.

But, if anyone doesn't want their benefits swallowed up by bank charges, it is simple - just open a basic bank account, with a different bank, (no checks made) and arrange for all benefits to be paid in there.

Basic bank accounts don't always have a debit card. Sometimes it's cash point only.