Bank charges while in receipt of benefits

jetty

Hi, someone shared this on FB and i was just wondering how much truth there is in it? :

Whoever wrote that this Act:
Did you know that

Section 187 of the Social Security Administration Act 1992

There is an Act of Parliament which over-rides banks taking charges from your account if you are in receipt of any of the following benefits.

• Income Support
• Tax Credits
• Child Benefit
• Job seekers allowance
• Incapacity benefit
• Disability living allowance
• Attendance Allowance
• CSA payments
• Other DWP payments

These social security benefits are granted to stop hardship and are designed to meet basic day to day needs, and are exempt and are protected under the Social Security Administration Act 1992 sub section 187. from arrestment in terms of section 187 of the Social Security Administration Act 1992 (see Enforcement of Civil Obligations in Scotland, Scottish Executive report, at paragraph 5.245).

Section 45 of the Tax Credits Act 2002 Chapter 21 part 1 is an identical provision to the said section 187 of the 1992 Act. This stipulates that the banks can not apply any charges to money received as benefit, and any such charges are unlawful and therefore disallowed.

If you have any bank charges and in receipt of these benefits - write to your bank asking for your charges back.

dunstonh

If you have any bank charges and in receipt of these benefits - write to your bank asking for your charges back.

Its an internet myth. A total misunderstanding of the requirements and has no impact on bank charges in the way you are referring to them.

Aquamania

jetty wrote: »

Hi, someone shared this on FB ...

Perhaps you could share this link back:?

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

advice_for_life

I am involved in providing low interest loans for a credit union. Many who apply are on benefits applying for small loans of no more than £500. With their permission we look through their bank statements and have noticed several people who have been charged fees for package type accounts, Authorised and unauthorised that appear not to have been addressed by the bank or customer for years and payments missed for direct debits just a day or two from their benefits going in which therefore accrue charges. The banks have to make money but some of these customers are frightened of saying anything through fear of losing their account or facility the bank has provided. Some are fobbed off by the bank staff who talk to them as though they are daft and embarrassment ensues. If the bank were to work with the customer with an approach that could show them how to avoid these costs then if regular charges continue, a basic bank account could be offered and at least a conversation has taken place to help the customer.
I would like to ask if anyone out there is independently checking the banks on behalf of these people about these charges, who are the ones who are paying beyond their means for these bank accounts!