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

rjm2k1

boo_star wrote: »

Most banks will allow you to withdraw benefits, even if said benefits will take you overdrawn.

How can withdrawing benefits make you overdrawn? Surely it's spending more money than you get in that does that.

rjm2k1

ally2524 wrote: »

Hi I poste here a couple of weeks back due to A&L taking £50 charges out of my child tax credits (I have 4 kids). I sent them a letter stating under social security act 1992 section 187 this was unlawful only for them to send a response over some test case - our charges are lawful blah blah.
I need urgent help any ideas on where to go next
Ally

Good luck to you but get in there whilst you can, this will undoubtably be tested in court (or possibly just clarification from the government) as I don't think that anyone can realisticly believe that banks should give people on benefits the ability to missmanage their account and go overdrawn without some kind of come back. It will either end up being clarified that charges can indeed be taken, or people on benefits simply won't be given accounts that can go incurr charges.

Phoenixx73

Ok. I have just this second gotten off of the phone with the DWP. A fairly lengthy conversation because the girl who i was dealing with was running around the offices asking anyone if they knew what on earth the law sais as far as banks being able to take charges from benefits.

After a half an hour of her running, it was decided that even the DWP dosnt have a clue as to where the law currently stands.

She suggested that i call my bank and say that I am reclaiming my money as stated in the SS act 192 etc etc.

What we really need is clarification on the law in laymens terms and a plan of attack (such as has been drawn out for the more normal reclaiming method).

Now I know that once i call my bank (Abbey) and say I want my money back because the law says they cant take it from my benefits, they are just going to lie to me and do whatever they can to not pay... and to be honest, after reading the horror stories from these very forums, I expect nothing less.

Please.... Can someone who knows more about thee things than I do make up an idiot's guide to reclaiming bank charges for people on benefits... What to say, what to do, and the obstacles the bank will throw at you, and how to get around them?

ALSO.... as a side question.... I have been on incapacity benefit for 10 years.... all 10 of those years the bank has taken charges from them. Now I know the standard bank reclaim method covers 6 years... but as this is a breach of social security laws... would i therefore be entitld to claim back charges for as long as I have been on benefits??

bunter

thanks to this lovely site i have just got back charges that were taken from my benefits to the tune of £90! nice result just before the bank holiday weekend. all i had to do was quote the social security act at them and they peed their pants.

have also typed out a response to TSB`s solicitors about the stay on my bank charges court case. i have claimed "hardship" as i am unemployed and unable to pay out goings etc etc so i am hopeful for that too.

thanks yet again to this site and its users i have gained some money

chris

MonkeyMad

Quote:
<table border="0" cellpadding="4" cellspacing="0" width="100%"> <tbody><tr> <td class="alt2" style="border: 1px inset ;"> Originally Posted by MonkeyMad
An alternative is to have benefits paid into an account that does not allow overdrafts and hence no charges?
</td> </tr> </tbody></table>
Is there such an account, let me know if there is so we can all join!!!!;)



A quick search of current accounts on Motley Fool gives 17 such accounts and a google gave several on the first page, so the answer would be yes?

cherade9

I have a Cardcash account with the Halifax. which has no overdraft facility, which is what I wanted. However it doesn't stop them from taking unauthorized overdraft charges from you. They'll quite happily let you get into that situation because they can charge you £28 a time. Then theres the fees for bounced direct debits, at £35 a time too.

The advice given if you think you're going to have a situation with not enough money in your account? Ask the bank for a temporary overdraft. Will they give you one if you're living on benefits? Not a chance!

MonkeyMad

The Cardcash account has no arranged overdraft facility. Change to an Easycash account. That doesn't seem to figure in the Halifax table of charges.

If the bank wont give/extend overdraft then payments from the account have to be rescheduled.

fatbelly

I've just read right through this thread. The Govan Law Centre Letter seems an excellent (for those covered by Scottish Law) first line of attack, and the same paragraphs can then be put as details of claim. http://www.govanlc.com/benefits_&_bankarrestment.htm Has anyone got an English-law equivalent?

rach20uk

Hi guys,

Ive not posted before but read alot I need some help.

Halifax have been charging me over and over and i have put in to reclaim the charges. The FSA say that they have to deal with hardship cases - would i be entitled to this as i am only received stuatory maternity pay?

They have also been charging me whilst i am receiving SMP which i am lead to believe is againt the SSA 1992 (cant charge you from benefits)

Can anyone help with this please? I am owed £100 and getting very annoyed now (i did pay it all back and clear the account - they then charged interest which took me £3 overdrawn and charged me £78 as a result!!)

Thanks

rach20uk

Wanted to add that after bills i am only left with £15 to live on a week and i have a 4 month old son. I dont know if i can continue the claim based on this?