unpaid fees - barclays basic account

SnowTiger

Additional reading here and here.

I'm wondering if this is a (unauthorised) overdraft charge or a charge for bouncing a debit card payment.

Aquamania

mandy14 wrote: »

Hello.

My husband has just been charged unpaid fees from a company taking money off his debit card.

Barclays have told him that the charge policy have changed and they can now charge people on benfits when last year it was unlawful to do this.

Is this now the case that they can charge anybody?


We have had no letters about this as the bank have 2 addresses on his account and noone has changed it following id being shown.

Ask the bank which law they are referring to which has changed in the last year

mandy14 wrote: »

Payment being requested off debit card not direct debit.

Does this still apply?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.

The first stutute is still valid, but does not and never has applied to the application of bank charges - it's an urban myth according to this MSE article
http://www.moneysavingexpert.com/reclaim/bank-charges

Which part of Section 45 of the Tax Credits Act 2002 Chapter 21 part 1 "stipulates that the banks can not apply any charges to money received as benefit, and any such charges are unlawful and therefore disallowed." ? :huh:

You can read it here:
http://www.hmrc.gov.uk/manuals/tctmanual/attachments/tctm11000thetaxcreditact2002.pdf

What the section you refer to actually says is:

45. Inalienability
(1) Every assignment of or charge on a tax credit, and every agreement to assign or charge a tax credit, is void; and, on the bankruptcy of a person entitled to a tax credit, the entitlement to the tax credit does not pass to any trustee or other person acting on behalf of his creditors

Nothing I see there referring to bank charges, or their legaility

:huh: :huh: :huh:

Are you sure you have cited the correct statute??? :huh:

pmduk

I suspect the OP has been getting money advice from Facebook or Mumsnet.

datostar

'Other DWP Payments' presumably include State Retirement Pension, Winter Fuel Allowance and the £10 Christmas Bonus paid to pensioners!!!!

meer53

SnowTiger wrote: »

Additional reading here and here.

I'm wondering if this is a (unauthorised) overdraft charge or a charge for bouncing a debit card payment.

A debit card payment can't be "bounced" they're guaranteed to debit once authorised at point of sale. Regardless of the balance in the account when they debit.