Halifax took my housing benefit.

endlesssummer

I recently got myself overdrawn in the bank, I told my council that I needed my rent money paid into another account as it would get swallowed up, To my shock & horror they ignored this so Halifax have used the money to clear my overdraft. I contacted the council who said something about the Bank had to refund the money as it was rent money, they mentioned a rule, first right of appropriation. I phoned the Halifax, they are refusing to return the money. Got to tell the landlord today. Could lose my flat. Halifax couldn't care less. I wouldn't mind if it was my money I could understand, but it's for the rent. Madness.

glider3560

You have to tell the bank how to use the money before it gets paid in.

GingerFurball_2

Halifax are blameless here. You can use the right of appropriation but that has to be exercised before the money gets paid into your account.

agrinnall

I think your only hope is for the council to accept that the error was theirs and to pay the money into the correct account, and to separately reclaim the payment from Halifax. Whether they will be prepared to do this or whether Halifax will co-operate is uncertain. I'd get my Councillor involved if it happened to me.

pfpf

without wanting to sound silly, hard to do.
can't you pay the rent from the overdraft and put yourself back in the same situation as before and be overdrawn with the Halifax?
if the council hadn't paid the rent money in to the Halifax account what was the plan to repay the OD?
I would have thought rent would be the no1 priority here for both you and the landlord.

pinkdalek

What was the root cause of you being overdrawn?

Sounds like you need to go through your budget and prioritise your essential spending and debts.

PeacefulWaters

Thread title:

"I took Halifax's money and they took it back"

irismary

Hi, I used to be a debt adviser with C.A.B. we used to advise our clients to put the request in writing to their bank and to take it in person to their branch. You should state something along the lines - I wish to claim the First Right of Appropriation for the deposit that was made to my account from...council Housing Benefit as this is for the sole purpose of my rent. It does not have to be done prior to the payment but of course that would be better. They should agree straightaway. Of course I am no longer employed by C.A.B and things may have changed but it is certainly worth trying. There is a law to quote as well that your local C.A.B should be able to help you with. They may also have a template letter. Hope it works.

unforeseen

irismary wrote: »

Hi, I used to be a debt adviser with C.A.B. we used to advise our clients to put the request in writing to their bank and to take it in person to their branch. You should state something along the lines - I wish to claim the First Right of Appropriation for the deposit that was made to my account from...council Housing Benefit as this is for the sole purpose of my rent. It does not have to be done prior to the payment but of course that would be better. They should agree straightaway. Of course I am no longer employed by C.A.B and things may have changed but it is certainly worth trying. There is a law to quote as well that your local C.A.B should be able to help you with. They may also have a template letter. Hope it works.

You were advising wrong. It needs to be done before and for each deposit. Even the CAB site says this.

GingerFurball_2

Some banks will only honour one right of appropriation.

irismary

I can only say it worked every time. I agree it is better if done before but always worth trying