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

debbiedean

Can anyone offer advice?
My brother is on Disabiliy Living Allowance etc for mental health problems. He has tried to reclaim bank charges of over £3K from Lloyds but is application has been on hold because of the court case.
After reading this site :money: I told him to call the ombudsman to say he was in financial difficulties..... he did and they said they would deal with his application.
They are now telling him (months later) that all they can do is stop his bank charging him for the future until a decision is made... He would have to wait like everyone else until the court case is decided :mad: to reclaim any charges.

I am now in a dilema - first, has he misunderstood and they are actually dealing with his claim. Second, should I take over his claim (due to his health problems) and tell his bank he is on benefits and persue that avenue??

Either way he is still in financial difficulty and I can't believe that Lloyds have taken money regularly out of his account for charges knowing he is a vulnerable adult and on an extremely low income!

Any advice would be welcome!

novelli

You are correct in that the ombudsman wont actually ask the bank to repay the charges only to see if there is anything they can do to stop future charges, and even tho they have been no use in my case. I had the same problem in that they told me they would take my case on but months down the line said that they wont actually ask the bank for any money back!!!! They say they have written to the bank about helping me stop future charges but this was ages ago and they are not bothering to chase them up, so once again the bank win!!! im in the same situation re disability benefits, but no one seems to give a monkeys and the bank continue to take money every month because of the spiral these charges have gotten me into.
the bank have ignored the ombudsman letter and just get away with it!!
Whether this means that if the test case is won my claim will get dealt with quicker i have no idea, but have to say i have lost all faith in the ombudsman and have found their attitude appalling.

look like he will have to wait too.

mazzapeeps

hi thanks for the reply disability have changed how they pay me so the bank cannot get my money should be in post office Friday morring but what i cannot get to sleep over the amount it is now as i have had another letter with 58 charge (28 letter the rest charges) i am terrified to go into bank but at least the disability is very understanding
why have a law that nobody takes any notice of especially banks

a11waysindebt

Hiya op,

What bank are you with to charge you £58.00 for being overdrawn.

I find this a terrible attitude from the bank involved.

mazzapeeps

hi there the one with the advert were they all sing and dance( we are paying for that advert) and they give you X extra. yes extra charges, this has been going on for quite a few years when the dhss up graded the computer system and everybody was paid late and the government said they had to waver charges as the system crashed not this bank
good news my payment went into post office this morring so the bank cannot take it hurray just worried what will happen next probley end up in court for not paying will keep you all informed thanks for all the help

livelyred

Im also on benefits income support,housing benefit,child benefit my money goes into my post office account not my bank,just wanted to know as ive been trying to get my bank charges bck with Nationwide since 2006 christmas lol yes its a long time,im in alot off debt too can i still apply for hardship or is it only when your benefit goes into your bank account where the charges have been taken out off ? Any help will be appreciated Thanks

MrsHnumber2

Hi, just thought some of you should be aware of this; more tricks from Abbey!!
I followed Martin's advice refernce the Social Security Administration Act 1992 and the fact that I am on benefits so Abbey are not legally allowed to take charges from my 52 pound a week income for myself and two kids... I explained this to them and they told me when I signed my agreement(like, I am really going to have a copy of that!) for my account apparently there was a clause that I agreed to dismissing this law!? Thanks Abbey; you charged me 45 quid for going £6p overdrawn on a Sunday night when you allowed a direct debit for 12 quid to go through and my benefits would have been there the next morning. little sympathy after telling them this meant my girls and I would have only £7 to live on for the week. I reallly pray we will win this court case because they have treated me like this for years and the only time I ever go overdawn is when they allow dd's to go out early on a Sunday; whatever happenned to Monday to Saturday banking?
Sorry to rant, but sick of the fat cats at the top always winning and my girls and I being the ones eating beans on toast for a week and having no electricity for three days.. oh, and no gas for four days!:mad:

a11waysindebt

Hi, Ask them for a copy of the agreement you signed.

Dylanwing

It might be worth checking this out with the CAB. I've only done basic law, but I'm pretty sure that unfair terms like this are not valid if they are not individually negotiated and are just inserted into a generic contract. If you think about it, the Law is there for a reason and cannot be invalidated by getting people to sign T&C's in gibberish. I would also pursue this with the Bank in writing, and try quoting the Unfair Contract Terms Act 1977 and the Unfair Terms in Customer Contracts Regulation 1994. I'm pretty sure this breaches one of them, and if not, they might decide that it's cheaper to pay you back than pay for legal advice. Oh yes, and ask them for a copy of your signed contract, and highlight the clause where they claim that you are agreeing to waive your legal right.
What you have to remember is that Branch staff are generally pretty clueless on stuff like this and will say anything to avoid refunding charges. And don't forget the claim for hardship caused by this illegal act, say £50.

Alfie_E

MrsHnumber2 wrote: »

I explained this to them and they told me when I signed my agreement(like, I am really going to have a copy of that!) for my account apparently there was a clause that I agreed to dismissing this law!?

You can’t. No matter what you agree to, the law trumps it. The relevant part of the act explicitly states this.

187 Certain benefit to be inalienable

(1) 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 a beneficiary, such benefit shall not pass to any trustee or other person acting on behalf of his creditors.

An inalienable right is one that you can’t give up.