Halifax took my housing benefit.

irismary

GingerFurball wrote: »

Some banks will only honour one right of appropriation.

With respect banks do not have a choice over when/how many times. They must abide by the law. There is further protection in social security law where the deposit is a benefits payment and I would advise endlesssummer to get full advice asap

unforeseen

If you don't exercise your First Right of Appropriation before the money hits your account then when it hits the bank exercises its Second Right of Appropriation to use the money to offset the overdraft

A good legal explantation and the holes in the legislation can be found at https://www.barcouncil.org.uk/media/61883/_47__emma_williams.pdf

jonesMUFCforever

irismary wrote: »

With respect banks do not have a choice over when/how many times. They must abide by the law. There is further protection in social security law where the deposit is a benefits payment and I would advise endlesssummer to get full advice asap

Customers can ask once - whilst the law states that multi applications can be made - it is of no use if the bank has closed the account as it has the right to do so.

GingerFurball_2

irismary wrote: »

With respect banks do not have a choice over when/how many times. They must abide by the law. There is further protection in social security law where the deposit is a benefits payment and I would advise endlesssummer to get full advice asap

Try it a second time and some banks will trigger a 60 day notice to close.

System

Since the OP has another account and wants the funds paid there going forward - a slightly moot point.

GingerFurball wrote: »

Try it a second time and some banks will trigger a 60 day notice to close.

unforeseen

irismary wrote: »

There is further protection in social security law where the deposit is a benefits payment and I would advise endlesssummer to get full advice asap

Covered by https://forums.moneysavingexpert.com/discussion/4319379

Its gone into the account and the bank now refuses to allow the overdraft to get any larger. They have not appropriated any money just limited the extent of the overdraft

jonesMUFCforever

irismary wrote: »

With respect banks do not have a choice over when/how many times. They must abide by the law. There is further protection in social security law where the deposit is a benefits payment and I would advise endlesssummer to get full advice asap

Where in the law system does it state it is ok to take money that is not theirs (its called an overdraft)?

irismary

Just wondered if you managed to resolve anything today

colsten

endlesssummer wrote: »

I wouldn't mind if it was my money I could understand, but it's for the rent.

I hope you will get your situation resolved, perhaps like pfpf suggested, by paying the rent from the overdraft and putting yourself back in the same situation as before and be overdrawn with the Halifax.

Once you have sorted the immediate problem, you need to also review your approach to money. The money for your rent is your money, before you spend it on rent. So you should very definitely mind about it.

If you find it difficult to budget with what's available to you, please get help from a reputable charity, such as https://www.stepchange.org

deadendwaterfall

agrinnall wrote: »

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.

If the council, and not the benefit claimant reclaimed the money successfully from the bank, what are the chances that the bank could then demand what was reclaimed by the council off the benefits claimant as compensation?