Opening a new bank account for benefits only?

Goldie4711

Hi,
I pay £60 per month bank charges on a £2k overdraft since I've been unemployed.
I've heard that if you open a new bank account for JSA/income support benefits, the bank can
1. NOT appropriate from the new account
2. Can NOT continue to add charges to the existing overdraft..

Is this true?...I'm sure there is some legislation on this but I can't find it..

I'd be really grateful for advice on this,
Thank you in advance,
Goldie

[Deleted User]

Look up right of appropriation - there is a letter you can write to bank I think sure it is something like that xx

marliepanda

Charges are treated a bit differently I think, if you open a new bank account do it with a new bank, not your old one.

They can however keep adding the interest and charges to your old bank account. You are using/missusing the service so have to pay the costs associated with it. There is some scope for using the financial hardship guidelines but often charges don't come under that.

Goldie4711

marliepanda wrote: »

Charges are treated a bit differently I think, if you open a new bank account do it with a new bank, not your old one.

They can however keep adding the interest and charges to your old bank account. You are using/missusing the service so have to pay the costs associated with it. There is some scope for using the financial hardship guidelines but often charges don't come under that.

Thanks for the response.
I am paying for what they describe as "fees" on my monthly statements.....£2 per day.
I am STILL sure there is UK legislation which does not allow appropriation if one is on benefits....(even though I appreciate you think they can continue to charge as I am "misusing their service")..... It is important to clarify, which I will try and do shortly

tomtontom

You can write to them and ask that they do not use any benefit income for charges. That does not mean they have to stop applying charges to your account, just that they cannot remove the money at this time.

The relevant legislation is the Social Security Administration Act.

wildwestfan

Perhaps open a basic account with no overdraft facility for your benefits to go into and make an arrangement with your present bank as to repayment of the overdraft.

Think you are getting a bit bogged down with what the bank can take from your income. It really doesn't concern the bank where the money comes from , it is simply income. You owe them so they will take what they are due.

Goldie4711

wildwestfan wrote: »

You owe them so they will take what they are due.

........they will take what they are due UNLESS UK legislation supersedes (their greed and moral repugnancy) in the meantime...

rogerblack

This is often misrepresented.
There is legislation preventing the bank taking a charge against benefits money.
This is _NOT_ the same as the bank making a penalty charge for the way you are operating the account.

Goldie4711

tomtontom wrote: »

The relevant legislation is the Social Security Administration Act.

Thanks for the post. I will research this now.
Even if they are compelled by law to defer their £2 per day "fees", it will help me AND help them.
There is a definitive answer to this, I'm sure, in the legislation..........

Goldie4711

rogerblack wrote: »

This is often misrepresented.
There is legislation preventing the bank taking a charge against benefits money.
This is _NOT_ the same as the bank making a penalty charge for the way you are operating the account.

Thanks for the quick response.
I'm not trying to "avoid" the £2 per days fees illegally, (like big companies and famous comedians and pop groups do do....ahem... JOKE....don't sue me!!!)....BUT if there is legislation that prevents them appropriating from my account during my current financial difficulties and ato at least defer the £60 fees, I would be most welcome to know it.
Do you know the part of the legislation that deals with it, please?
Then I will prasie it so other folk can know straight away
Thanks for your help,
Goldie

wildwestfan

Goldie4711 wrote: »

........they will take what they are due UNLESS UK legislation supersedes (their greed and moral repugnancy) in the meantime...

I get quite cross when people blame the banks when it is themselves who have spent money that they didn't actually have. All fine and dandy until expected to service the loan.

I don't think you will find that the Social Security administration Act is of any use at all. This was thoroughly explored and misunderstood when the bank charges issue was big news.