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

natweststaffmember

I think this issue has already been corrected by people on MSE. The bank can take bank charges from benefits.

deary65

All funds raised by the government whither it be by way of taxation or otherwise is held in trust for the benefit of the nation. Governments are elected to manage and give direction to such funds, in this case as a beneficiary of a fund set aside to assist you in your day today living expenses payed direct into you bank account( encouraged by the government). This places the banks in a fiduciary capacity( from which they cannot profit) as they now hold such funds on trust for your use, as the sole beneficiary only you can convert the monies for your use. It would be a different matter if the monies were payed direct to you in the form of giro payment, you then consciously payed the money into your bank account, the banks could then lay claim to the same. As you have have converted the funds.


The same is true with trustees in bankruptcy, they cannot lay claim to trust funds whither it be a personal pension or benefits. But as has been suggested have the monies payed direct to you or into a different bank account, and get good legal advise its free if you are on JSA.

Sol00

girlborofan wrote: »

We are in hardship, as soon as we are paid, our money has gone, thanks to these charges. We are playing catch up, but we are going further and further back. These charges outstanding from years ago, have not been refunded to us, meaning that we can't pay our bills in full every fortnight. The money was taken from our accounts before we saw it, leaving little left for bills, food, heating, etc.

Girlborofan

Go to http://www.moneysavingexpert.com/reclaim/bank-charges and scroll down to the template letters. If you don't have your statements with charges, you can request them with the Data Protection Letter template, if you do, then you can send the template letters requesting the charges back. You have a choice of asking for interest, or just the charges.

If you need any help, get back.

Tozer

catseyes22 wrote: »

Hi, the Social Security Act 1992 states that banks cannot take charges from benefits. If I were you I would write to your bank stating this and also request the return of any charges applied to your account since the start of your benefit claim. If you dont get a positive response from your bank refer it to the office of fair trading.
HTH

Cats x

As has rightly been said on this thread, this is absolute rubbish and I really wish people would stop perpetuating this myth.

This question gets asked once a day I reckon.

I also think you should recognise that the OFT is NOT the regulator or dispute resolution for bank disputes. It would be the Financial Ombudsman.

deary65

Hi Tozer,
Would you care to shid some light on the matters, by way of decided cases. I for one would be most interested in reading the reasoning of the courts.
Thanks.

Tozer

deary65 wrote: »

Hi Tozer,
Would you care to shid some light on the matters, by way of decided cases. I for one would be most interested in reading the reasoning of the courts.
Thanks.

Decided cases on what? The law prohibits an assignment or charge to be attached to benefits.

"Charge" in a legal sense means mortgage or otherwise encumber. So you cannot, for example, raise money by either selling the right to benefits or by allowing an encumberance over them. The rationale for the law is pretty obvious.

Once money is paid into an account it is no longer "benefit" money but simply money. Aside from the charges reclaim argument, there is no reason why bank charges cannot be applied against these monies.

In the same way that cheques can be written against this money and direct debits can be lawfully claimed.

deary65

Thanks tozer,
You have not answered my question, do you know of any decided cases on the above matters.It is the reasoning of the courts that I'm interested in, not your considered opinion however learned it my be.

Tozer

deary65 wrote: »

Thanks tozer,
You have not answered my question, do you know of any decided cases on the above matters.It is the reasoning of the courts that I'm interested in, not your considered opinion however learned it my be.

There are no cases to my knowledge as it would be a hopeless case.

The fact that you cannot prove something in the negative doesn't prove a case.

To my mind, it is ridiculous to suggest that there is a case - as supported, I think, on this and other websites.

natweststaffmember

Tozer, matters have been clarified across sites with regards to the term "charges" which initially were assumed to INCLUDE bank charges, but that is not the party line on other sites now. The initial thoughts on the matter has meant that there will be threads across all sites where it is stated banks cannot take government benefits. That is unfortunate that that has happened but I agree with you that a bank CAN take benefits in charges and therefore have not sought to contradict you(apart from the other sites bit )

Tozer

natweststaffmember wrote: »

Tozer, matters have been clarified across sites with regards to the term "charges" which initially were assumed to INCLUDE bank charges, but that is not the party line on other sites now. The initial thoughts on the matter has meant that there will be threads across all sites where it is stated banks cannot take government benefits. That is unfortunate that that has happened but I agree with you that a bank CAN take benefits in charges and therefore have not sought to contradict you(apart from the other sites bit )

Thanks NWSM. It is annoying how people can totally misinterpret legislation to suit their own purposes!