please help

toobs1981

for years I have had a simple checking account with halifax. for a lot ofor this time I 2 as receiving benefits. if I had a failed direct debit I would be charged £10 by the bank, this charge would take me overdrawn and as I did not have an overdraft agreement (checking acc) I would also be charged for an unauthorised overdraft and charged additional weekly charges for every week I was overdrawn. the full totAl was then taken from my benefits.and this would happen every month or so.....can I get any of these money's reimbursed? I am no longer on benefits or in hardship but do still have the same account. what should my first steps be?......any help would be appreciated...thanks

toobs1981

it is my understanding that the bank should not take any chargues out of benefit payments...legitimate or otherwise

dunstonh

toobs1981 wrote: »

it is my understanding that the bank should not take any chargues out of benefit payments...legitimate or otherwise

That is an internet myth and not correct.

Your question has been answered on the other thread you posted on.

Chalkius

toobs1981 wrote: »

it is my understanding that the bank should not take any chargues out of benefit payments...legitimate or otherwise

This isn't correct. Some people have misinterpreted a reference to charges as being bank charges, rather than a legal charge or a fee. It's not. Once that money hits your bank account then it's subject to bank rules. So if you weren't managing your account properly you're not entitled to any of those overdraft charges or unpaid DDR charges.

"The purpose of the Social Security Administration Act 1992 Section 187 and section 45 of the Tax Credits Act 2002 is to prevent people’s benefit money being at risk by it being assigned over to a third party in settlement of a debt. It is not intended to prohibit the application of bank charges. Bank charges are in the nature of an expense, and are incurred by the holder of the account; tax credits and benefits are payable in order to help customers meet their expenses, and as such it is legitimate for banks to deduct charges from the balance of an account held in that bank, whether the money paid into the account comes from tax credits, benefits or other sources, such as earnings.”