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

rjm2k1

Twinkly wrote: »

An alternative is to have your benefit paid into a savings account and put the money into the bank when the DD becomes due.

If you use a saving account from the same bank, some of them will use your savings to pay the charges on the current account. If you use a different bank, there's a 5 day wait for money to transfer between them, quite a shuffling act to perform for every DD. Once the money hits your current account it will probably be used to pay charges.

Twinkly wrote: »

at least you are in charge of your finances and not entrusting it to someone else. Personally I have no faith whatsoever in the banks to manage a p*** up in a brewery, never mind a DD, and always pay by another method. It does cost more but its a hell of a lot less than a bank charge. I KNOW it got paid and always have a receipt as proof.

I've never had a single problem with my bank and Direct Debits.

Twinkly wrote: »

I dont think many of us were aware of the rights of banks until the issue of reclaiming charges came to light but the bank can not control your finances and take charges if you dont let them. There are ways and means

What rights? The right to charge customers for services rendered? Fancy that, I never realised they were charities. There are ways and means? Surely if you are having to use "Ways and means" to prevent banks from charging for services rendered then you are actually not in charge of your finances.

srp69

After my last post I called the DWP for clarification of the SSA act 1992-187(inaliable deductions) before contacting the ombudsman, and after consulting their 'blue books'( acts of law pertaining to social security ect, available to view on DWP website) and themselves seeking guidance on this, the DWP line on this is that the SSA act 1992-187 is in regard to bankrupts only SORRY .
However on contacting the FOS I took the gents statement to mean that the FOS do feel that the banks are indeed putting people in financial hardship situations with the very act of taking charges from the account of someone on benefits and take a dim view of this practise.
i have made my complaint about the halifax to the FOS on the grounds that they ignored my plee of financial hardship completely in that they didnt address it in their reply letter and continued to take the cash regardless. I am now waiting for a reply to the ombudsmans letter to them, will they still be as uncongruess in their dealings now i wonder.

MonkeyMad

What FOS take a dim view of and what is lawful (and banks feel they can get away with) don't necessarily coincide...

moonflower_2

I have 2 case with the financial Ombudsman since 31st July. In October I rang to get an update on the progress of my claims only to be told that they had not been pased to the investigative dept yet.

I explained that this was causing me financial hardship as all the monies were being from benefits.

They explained that I needed to enter my case as urgent, and has now been passed to the fast track dept on the 4th October.

I rang them last week only to be told that they were being dealt with by date.
How long can this go on 6 months?

srp69

What FOS take a dim view of and what is lawful (and banks feel they can get away with) don't necessarily coincide...

how could it be lawful if the banks feel they have to be 'getting away with it'

Twinkly

rjm2k1 wrote: »

If you use a saving account from the same bank, some of them will use your savings to pay the charges on the current account. If you use a different bank, there's a 5 day wait for money to transfer between them, quite a shuffling act to perform for every DD. Once the money hits your current account it will probably be used to pay charges.

Ultimately you can avoid penalty charges completely by personally paying the money into the appropriate account by hand before the DD becomes due. Its that simple really. We'd all like the convenience of other methods but the risks of such are to be considered.

rjm2k1 wrote: »

I've never had a single problem with my bank and Direct Debits.

This probably explains your patronising and sarcastic attitude to those of who have and through no fault of our own.

rjm2k1 wrote: »

What rights? The right to charge customers for services rendered? Fancy that, I never realised they were charities. There are ways and means? Surely if you are having to use "Ways and means" to prevent banks from charging for services rendered then you are actually not in charge of your finances.

The right to retain monies automatically, even when that amount is the minimum paid by the government in respect of a persons 'living allowance', for one. The right to access other accounts held with the same bank, for two. There are more dependant on individuals circumstances and I wont waste space listing them all. This forum has an excellent search facility if you wish to look for more.

In the event that you have completely misread the purpose of this board I direct you to its title 'Reclaim Your Bank and Credit Card Charges'. The word 'service' does not appear anywhere in that sentence. To the best of my knowledge this is not the 'Reclaim Your Service Charges' board and no one has reclaimed or been refunded a charge that is proven to be for a service.

I have not, and do not, advise anyone to deliberately avoid payment of contractually agreed service charges.

I have advised a method to prevent the bank taking essential benefit income automatically for a charge that is considered to be excessive, unlawful and a penalty until proven otherwise. There is a difference although you seem to have missed it.

In doing so I am most certainly in charge of my finances and hope it will help others to do the same.

MonkeyMad

srp69 wrote: »

how could it be lawful if the banks feel they have to be 'getting away with it'

It is lawful to drive a rather large engined car around the streets of London and one without a catalytic convertor at that, but since we all became eco-evangelists overnight, one would feel that it is only permissable to do so if you could 'get away with it' without incurring the wrath of the City Mayor.

In the context of the discussion it is lawful to charge for a breach of contract in an amount to cover expenses from the breach. I don't know what the actual costs of a bank are (and neither does anyone else as yet I feel) and in this instance it is not relevant. What is relevant is that if banks think they can charge this amount to people on benefits without causing damage to their business they will regardless of whether or not FOS likes it. Because they can.

What would temper their opinion would be a true law change barring them from charging certain people, or another bank blinking first and charging less.

Pink_Princess_5

I have read tidbits of this thread , was after some info.

I have been online this morning to check my balance, and I am overdrawn £78. The halifax have taken £78 in bank charges. This has now made me £78 overdrawn without an authorised overdraft.

I have not received a letter about this charges (presuming it got lost/delayed in postal strike) so its come as a surprise to me.

I receive DLA/IB , and this charge is a huge sum to loose from a weeks money. It is direct debit week, so more than likey some direct debits are now going to fail...its starting to snowball

Will they be interested in this if I ring and ask for them to be removed ? I successfully won back some charges last year, will this effect me ?

I really cannot afford to lose such a huge chunk in one week.

Can anyone advise please what I should do.
Thank you in advance

dust75

i wrote to lloyds tsb and asker for my bank charges back and they gave me £750 out of the 3000 they stole from me this was before i found out that they cant take any money from any benefits i would like to know if i can reclaimthe rest of the money as they never asked me to sign anything and they just said we hope this matter is delt with any help please

krisskross

Unfortunately bank charges can be levied on benefit income. Once money goes into your account from whichever source it is just income. However if they have just repaid some and you have not signed that you accept in full and final settlement then I am sure you can still try for the rest.