What can we do if we are on benefits (merged)

zena2105

mouthscradle wrote: »

Apologies if this has been mentioned elsewhere, I 've had a look but I can't find it..

I'm about to start reclaiming charges from Lloyds TSB for my motherinlaw, she is a single mother also bringing up her 2 year old grandchild and is reliant on benefits, she's always in financial difficulty and is charged on a regular basis.

I was about to send off the standard Data Protection Act request for the list of charges but have now seen this topic. What I want to know is, is there a template letter or anything that I should use first to notify the bank that she is in financial hardship and/or in receipt of benefits? Or do I just follow the normal reclaiming route?

Thanks for any help

There isn't an officail template letter but this is what I sent....

I have been receiving Incapacity benefit since 2000 and am currently receiving approximately £125.75 per week this is what the government deems I am able to live on, to cover the cost of rent, bills, food and clothing, I have no other source of income.<o></o>
<o></o>
Whilst I have held my account with you, I have been charged and had levied from my account on numerous occasions fees of usually £28 for being overdrawn; this took about a quarter of my weekly income. This eventually left me down in money, a sum I couldn’t afford to repay, leading to more fines the next month, and so it continues, snowballing. Now I am currently £405.31 overdrawn. At the time I did contact you explaining my situation and asking for assistance but it was denied.

<o></o>
I have recently discovered there is a Law, called the Social Security Administration Act 1992, which says that banks must not levy charges from benefits as this money is needed for a person to live on. <o></o>
“Social Security Administration Act 1992
Miscellaneous
Certain benefit to be inalienable **

187- Subject to the provisions of this Act, every assignment of, or charge on-
(a)benefit as defined in section 122 of the Contributions and Benefits Act;
(b)any income-related benefit; or
(c)child benefit,
and every agreement to assign or charge such benefit shall be void; and, on the bankruptcy of the beneficiary, such benefit shall not pass to any trustee or other person acting on behalf of his creditors”

<o></o>
I realise that you are likely to quote back to me that I agreed to this in my Term and Conditions, but you tell me if you, or any other bank would allow a customer to become a member without agreeing to these.

<o></o>
This has caused me a lot of financial hardship, of which I see no way out, so I therefore ask that you return all charges/fees levied from my account in the past 6 years, that were wrongfully taken in accordance with the law. Also note that I would like this matter dealt with in a timely matter, as it has no relevance to the current OFT Test Case.

<o></o>
If I do not receive a satisfactory response with an acceptable time, I will have no choice but to forward this matter to Tony Herbert, at the Citizen’s Advice Bureau and/or the Financial Ombudsman.<o></o>

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but the banks tend to ignore it, and they sent back standard OFT test case letter, although a week or so later they did send HARDSHIP case letter, asking for means forms to be filled in and returned.

I have written to Martin Lewis and asked if he can clarify this matter...so we may find out soon how it works....;)

mouthscradle

Thank you very much, I think what I'll do is send this initial request and find out the amount she's been charged, and then notify of the hardship/benefits situation when I send off the second letter requesting the charges be refunded. Many thanks, and good luck with your claim

harveybobbles

I wrote a letter for my other half to shatwest and I wrote across the top of it "HARDSHIP CASE" in the biggest letters possible!!

We got a form to fill in with income/expenditure.

What is the best way to fill it in? Make the income/expenditure balance? Or make one out-weigh t'other?

harveybobbles

bumpity bumpness......

Elise1309

It's ridiculous to suggest that an overdraft could somehow be classed as 'income' - it's a negative balance and has to be paid back to the bank in full and complete with interest usually - you are never 'in credit' when having one, unlike a standard loan on an in-credit account.

As for the idea of people on benefits somehow getting 'special treatment' by being exempted bank charges - I never heard anything so ridiculous. The government say that benefits such as JSA are the minimum for subsistence. Therefore banks are not allowed to take charges from people who have no other income. The quotation about banks having to consider the issue of charges relates to those in general financial hardship ie whether one is on benefit or not, and is a separate issue from the govt regs regarding bank charges and benefits recipients.

Lastly, anyone who has ever been out of work and on benefits will know that it is a very difficult circumstance indeed - you are beholden to the DWP who can take months to process and pay out on even quite straightforward claims, leaving people with huge debt through absolutely no fault of their own. To suggest that someone existing on as little as £57 a week (or possibly even nothing whilst claims are first processed) should be as liable for charges as someone earning 60k a year is ludicrous.

harveybobbles

dum dee dum...

bengal-stripe

harveybobbles wrote: »

What is the best way to fill it in?

Truthfully!!!

Edinburghlass_2

bengal-stripe wrote: »

Truthfully!!!

Absolutely, especially as the bank will be able to tell by your account what financial hardship you might be in.

The thread regarding Financial Hardship is here ...

http://forums.moneysavingexpert.com/showthread.html?t=513470

CrystalGecko76

Hi...I have been on incapacity benefit for about 4 years. I have a long term condition which makes it difficult for me to work. This month (October) I was paid my money/benefit and the bank took more than half of it in charges (almost £300 worth) I simply cannot afford to loose that ammount of money. A few months ago I was in a similar situation and they took about £150 which I thought was bad enough - but £300!!

I am now in a desperate situation, my bills have to come out as normal which means that due to them dipping into my account and helping themselves I will be out of pocket next month and possibly right up till New Year and beyond. Is this right?

Now I read in articles that you cannot claim because there is a test case, which means I have no leverage to get any of my money back...appart from not being well I really don't need this extra stress...what should I do?

I am also cancelling hospital appointments and my specialist treatments because I can't afford to get there (I don't drive) and I can't afford to pay for some of the treatments (unfortunately I can only get so much help on the NHS the rest I have to sort for myself)

Please could someone help me or give me some advise...I really just feel like ending it all...

Crystal

PS - They are also cancelling/closing my direct debits with out telling me, is that right? It will cost me more if they do that as I have to pay for paperwork charges, especially with companies like BT!

shooter

CrystalGecko76 wrote: »

Hi...I have been on incapacity benefit for about 4 years. I have a long term condition which makes it difficult for me to work. This month (October) I was paid my money/benefit and the bank took more than half of it in charges (almost £300 worth) I simply cannot afford to loose that ammount of money. A few months ago I was in a similar situation and they took about £150 which I thought was bad enough - but £300!!

I am now in a desperate situation, my bills have to come out as normal which means that due to them dipping into my account and helping themselves I will be out of pocket next month and possibly right up till New Year and beyond. Is this right?

Now I read in articles that you cannot claim because there is a test case, which means I have no leverage to get any of my money back...appart from not being well I really don't need this extra stress...what should I do?

I am also cancelling hospital appointments and my specialist treatments because I can't afford to get there (I don't drive) and I can't afford to pay for some of the treatments (unfortunately I can only get so much help on the NHS the rest I have to sort for myself)

Please could someone help me or give me some advise...I really just feel like ending it all...

Crystal

PS - They are also cancelling/closing my direct debits with out telling me, is that right? It will cost me more if they do that as I have to pay for paperwork charges, especially with companies like BT!

Hi Crystal
In your position I would write to the bank explaining thaty you are having to cancel hospital appointments for essential treatment as a direct result of their action ask them for a refund of the charges under the Hardship rules. If you do not recieve a favorable reply you then have 2 options open to you, you could go to the FSA?? (Think thats the correct agency) explaining the situation or you could send The LBA and if they still don't refund take them to court making sure you use an N1 and put everythikng in your POC' It is my understanding that the courts will still deal with cases where Hardship exists.
These are only my own personal opinions and I'm surethat if I am wrong someone will soon say so

I wish you the best of luck with this