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

lewt

change banks..... and dont have any DD's or overdraft. and if the a
bnk chase you for the money simpley say take me to court for it as its all charges....

deary65

This makes for most disturbing reading, the banks know these are benefits for you to live on they should not be appropriating them. May I suggest that you have your benefits payed direct to you.


You can use this letter not every lawyer is familiar with welfare law. Just to complicated!

I act on behalf of the above noted client and refer to your recent arrestment of funds in my client’s account number [XXXXXXXXX].

I enclose a copy of my client’s bank statement which confirms that the funds in said account derive from [tax credits, paid to my client by HM Inland Revenue, and/or child benefit paid by DWP, and/or child maintenance from the CSA, and/or social security benefits - income support, Jobseeker’s Allowance, Incapacity Benefit, Disability Living Allowance, Attendance Allowance etc., - paid by DWP].

Both the Scottish Law Commission and Scottish Executive concede that social security benefits are exempt from arrestment in terms of section 187 of the Social Security Administration Act 1992 (see Enforcement of Civil Obligations in Scotland, Scottish Executive report, at paragraph 5.245). Section 45 of the Tax Credits Act 2002 is an identical provision to the said section 187 of the 1992 Act.

It is therefore trite law that tax credits and other such maintenance or social security benefits are exempt from arrestment. The case of Woods v Royal Bank of Scotland 1913 SLT 1 Reports 499 is authority for the proposition that where exempt monies are paid into a bank account, those monies remain exempt from arrestment insofar as such monies can be clearly identified within an account.

As noted, I enclose a copy of my client’s account statement which clearly identifies [X amount of tax credits and/or social security benefits].

I would respectfully submit that any refusal to consent to the release the arrested sum of X [amount] from my client’s account will constitute wrongful diligence. Please advise in writing as a matter of urgency whether you will instruct and authorise [X Bank] to release said sum today.

If you fail to do so I will instruct an action for wrongful diligence and payment to be raised, and will also report this matter to the Sheriff Principal in terms of the Debtors (Scotland) Act 1987.

I look forward to your urgent response.

Without prejudice.

Yours faithfully

Write the letter as if you were writing it. substitute arrestments for wrongful appropriation leave out reference Scottish law and send it recorded and keep a copy. here is the law.

Social Security Administration Act 1992 (c. 5)

187.—(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.

(2) In the application of subsection (1) above to Scotland—

(a) the reference to assignment of benefit shall be read as a reference to assignation, "assign" being construed accordingly;

(b) the reference to a beneficiary's bankruptcy shall be read as a reference to the sequestration of his estate or the appointment on his estate of a judicial factor under section 41 of the [1980 c. 46.] Solicitors (Scotland) Act 1980.

(3) In calculating for the purposes of section 5 of the [1869 c. 62.] Debtors Act 1869 or section 4 of the [1882 c. 42.] Civil Imprisonment (Scotland) Act 1882 the means of any beneficiary, no account shall be taken of any increase of disablement benefit in respect of a child or of industrial death benefit.

May I further suggest that you post on the benefits board, I stopped reading there because it was just so depressing.

SamsMum_3

Hi, I am a single mother, recently seperated from my husband and in receipt of benefits. I remeber reading in one of the articles on this site that the banks cannot make charges against social payments from the state, although not all charges were made against these payments can I use the fact that I am in receipt of these benefits to move my case forward without waiting for a decision...?

Any comments glady received. thx...

[Deleted User]

SamsMum wrote: »

Hi, I am a single mother, recently seperated from my husband and in receipt of benefits. I remeber reading in one of the articles on this site that the banks cannot make charges against social payments from the state, although not all charges were made against these payments can I use the fact that I am in receipt of these benefits to move my case forward without waiting for a decision...?

Any comments glady received. thx...

Hi.. I'm writing to the ombudsman because of the benefits clause, (please anyone correct me if I'm wrong) but according to Martin they wil still deal with your case..
look at this link it may help.....
http://forums.moneysavingexpert.com/showthread.html?t=269424

jo_ray

my neighbour is a single parent on income support,who is claiming her charges. i read on here about this act may mean she can still get her pay out,so she rang her bank, they didn't know any thing about it,they phoned OFT,and whoever they spoke to said they didn't think it applied to bank charges.i've tried looking up the act , but i can,t find anything applicable either.can anyone offer any help.coz i feel i've sent her on a wild goose chase?

vicky66

Hi, I have been asking the same question and everyone has been really helpful. This was sent to me and I believe that she can claim using this act which is what I have been told. Although I dont know if anyone has successfully claimed this way. So I hope this helps. Here is the law:
Social Security Administration Act 1992 (c. 5)

187.—(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.

(2) In the application of subsection (1) above to Scotland—

(a) the reference to assignment of benefit shall be read as a reference to assignation, "assign" being construed accordingly;

(b) the reference to a beneficiary's bankruptcy shall be read as a reference to the sequestration of his estate or the appointment on his estate of a judicial factor under section 41 of the [1980 c. 46.] Solicitors (Scotland) Act 1980.

(3) In calculating for the purposes of section 5 of the [1869 c. 62.] Debtors Act 1869 or section 4 of the [1882 c. 42.] Civil Imprisonment (Scotland) Act 1882 the means of any beneficiary, no account shall be taken of any increase of disablement benefit in respect of a child or of industrial death benefit.

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rjm2k1

There was a short thread on this a the motley fool, their view was that this act does not cover bank charges :-

http://boards.fool.co.uk/Message.asp?mid=10652647&sort=whole

srp69

I intend to change tack on my bank as i have just recieved a letter from them stating that if i continue with my claim to court they will apply for a stay immedietely.My questions are - does anyone have a strategy using the social security administration act? could this be 'stayed' under the fsa ruling at court? although the latest charges i have incurred have been whilst on benefits could i claim all the six years under this act due to hardship?

johnhope

Hi,
I have started a claim through moneyclaim asking for my bank charges back from ABBEY. They have decided to defend the claim as of today :-( . They are also going to ask for a stay of claim as well. I have only just noticed on this site about it being illegal for banks to take charges from benefits as the law states that is what I needed to live on, (me, partner, 2 kids.) I had to pay £ 80 to start the claim for this which I didn't really have to start this and was informed by the bank that this could take until next year. How can I try and push this claim through without messing it up? Any information that anybody could give me would be appreciated as I also dont understand a word of the defence.

toniq

Hi,
Theres a thread on this site about hardship cases try there they might be able to help.