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

nickmack

chispa wrote: »

I've spoken to DWP who confirm it is unlawful to take charges from benefit money wherever it may be. However the banks ignore this and no one cares

This is a grey area and widely misinterpreted. The problem being, once the money is paid into a bank account, it is no longer 'benefit money', it's just money, unless it's explicity designated as such. Away to recognise this and help prevent charges from being taken is to use the 'Right of Appropriation'. The extract below is from the CAB website:

"Even if your account is overdrawn, you can choose how any further money you pay into the account is used (for example to pay your mortgage or rent). This is called first right of appropriation. You'll need to write to them with new instructions each time you make a deposit."

C_Ronaldo

Why not have your benefits paid into another bank account with another bank

nickmack

C_Ronaldo wrote: »

Why not have your benefits paid into another bank account with another bank

Yes, sorry I should have added that at the end of my message.

emmagrey

C_Ronaldo wrote: »

Why not have your benefits paid into another bank account with another bank

thats what i would suggest. dont even risk them taking you're benefits, just make the bank wait for their ridiculous charges and get benefits paid into another bank account with another bank.

robbie1_2

today my bank has charged me again for unpaid debit, i rang but to no avail,usual ignorance they forget they work for us.i looked into this and found that BENEFITS PAID INTO A BANK ARE PROTECTED UNDER SOCIAL SECURITY ACT 1992 SUB SECTION 187.THIS STATES THAT THE BANK CANNOT APPLY CHARGES TO ANY MONEY RECEIVED AS BENEFITS AND AS SUCH ARE UNLAWFUL AND THEREFORE DISALLOWED. CONFIRMED BY CASE WOODS V RBS.also tax credits are classed as a benefit .i have since sent this info to my bank and expect to get the charges returned to my account.interestingly i have been on incapacity since 2004 so any charges taken from me since then are also due immediately .i hope this may be helpful to someone in the same situation.:j:T

robbie1_2

as anyone any idea how to contact british gas as they dont answer phones or reply to e-mails.i had a prepayment meter fitted 3years ago for a bill i ran up.paid the debt off not had a statement of use since i am probably still paying a high tarriff ,has anyone any ideas yous

blackwidowz

What about child benefit, is that exempt?

sineadgraham

curious about this as i am in receipt of child benefit and maternity allowance.still getting bank charges so would be interested to hear if these are exempt

ged1980

As most people will now be aware, in July 2007 the Office of Fair Trading agreed with seven major high street banks to a test case to determine the legality of Bank Charges. This effectively has put all claims on hold until the case is decided. However, there is an Act of Parliament which over-rides this 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 benefits are granted to stop hardship and are designed to meet basic day to day needs, and are protected under the Social Security Administration Act 1992 sub section 187. This stipulates that the bank can not apply any charges to money received as benefit, and any such charges are unlawful and therefore disallowed. If you live north of the border you also have the weight of a successful test case won against a bank (Woods v Royal Bank of Scotland).


Thanks to smithja pointing me to this info

natweststaffmember

Its a myth about that bank charges and benefits cannot be taken.
Woods v. RBS was about "arrestment", a definition appears in this article from Scottish Debtline. http://www.scottishdebtline.co.uk/faqs/legal.htm
Bank charges is not the issue in Woods v RBS with regards to current bank charges claims and therefore expect a negative response or a wait and see or a are you in hardship response.