Santander over drawn help

[Deleted User]

If Santander won't negotiate and keep giving incorrect figures, (the OP has tried to talk to them several times), its time to go higher up, talking to Santander customer services isn't helping. This will take time. The OP's money will go in when it goes in. That's the only thing that will stop the charges at this point if the OP doesn't change his/her approach (see below):-

Thee is another approach the OP hasn't tried though http://www.moneysavingexpert.com/reclaim/bank-charges. This could ultimately lead to the account being closed, but I doubt the OP would mind that. Basically the bank isn't allowed to take money that is paid by benefits, that is supposed to be for survival only, in bank charges. However, this still probably won't happen with immediate effect.

bengal-stripe

deannatrois wrote: »

Basically the bank isn't allowed to take money that is paid by benefits, that is supposed to be for survival only, in bank charges.

This is an urban myth, which has been around for a long time.

The legislation covers third party assignments, but not bank charges which are by their nature an 'expense':

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

[Deleted User]

Someone needs to inform MSE then, that half of their information in the above link is an urban myth.

innovate

deannatrois wrote: »

Someone needs to inform MSE then, that half of their information in the above link is an urban myth.

Are you mis-reading the MSE article? Which half of the article is an urban myth? Where does the article state that the bank isn't allowed to take benefit money for the settlement of bank charges?

FireWyrm

This story is a sorry indictment of the current banking system where a debt of just £1.50 can balloon into £125. I thought those days were long over! That kind of interest actually makes a PDL look positively reasonable. It does seem lately, with the introduction of charges by Barclays recently, as though all banks are trying to kill the OD market stone cold dead.

k12479

FireWyrm wrote: »

This story is a sorry indictment of the current banking system where a debt of just £1.50 can balloon into £125.

It could be, except the story is fiction so I wouldn't say it's strong evidence on which to pass judgement on the whole banking system. If anything, the 'fact' that the CAB and Ombudsman fixed the situation in two weeks is surely a ringing endorsement of them.

MamaMoo_2

Jeez. So many holes.

1. OP "I do not know anyone", whereas in the first post OP says they sent a family member to the shop to get a loaf of bread.

2. £125 of charges for £1.50 unauthorised overdraft? Santander do not charge for the first £12 of any unauthorised overdraft.

3. OP cannot get out at 7pm, however posts 6 & 7 show that they were in the library at this time...

4. OP cannot get to a local food bank/doctor etc. but can visit CAB etc.

5. FOS wouldn't take up OP's case in that space of time, if at all.

Sometimes, I despair at the kind of people that feel the need to come on here and lie. It must be a sad sad life.

Mr_Goodkat

FireWyrm wrote: »

This story is a sorry indictment of the current banking system where a debt of just £1.50 can balloon into £125. I thought those days were long over! That kind of interest actually makes a PDL look positively reasonable. It does seem lately, with the introduction of charges by Barclays recently, as though all banks are trying to kill the OD market stone cold dead.

The entire story is clearly not correct.....

Anyone who let a bank turn a £1.50 debt into £125 would be a moron of the highest order