Benefits and Bank Charges

gratton20

Well done mate! I am glad my experience helped you too. As others have said and I tend to agree, I dont think the law actually is as clear cut as my letter made out but probably the banks just dont want the hassle of arguing it if you were to take it further. Or it might be as we used to say, a case of "Bullsh*t baffles brains" LOL

KeithSheppard

silvercharming wrote: »

I'm DWP, I'm not aware of any FAQ that says that, but then, one of these days that pile of virtual paperwork will topple over and flatten me

Not ideal, but I would suggest opening a 'bog standard' basic account with no overdraft/debit/cheque facilities at a different bank or building society, and getting your benefit paid directly into it. It won't make the overdraft disappear, but will at least ensure that your benefit benefits YOU and not the bloody banks.

My son has mental health issues and is surviving solely on Incapacity Benefit. He had an arrangement with the bank that they didn't allow him any overdraft facility. When the account was empty he couldn't draw out any more money. That arrangement worked very well for a year or more then suddenly, and without any warning, the bank unilaterally decided to extend an overdraft facility to his account.

Guess what. He drew out money he didn't have and has racked up more bank charges.

It seems that you may be able to set up an arrangement that suits your financial situation but trusting the banks to keep to it is a different matter.

emp_athy

I have a physical/mental health problems and have been on Income Support (paid by them, but Incapacitated) for coming up to 4 years now.

My present issue is:

I was not sent a reminder letter about my sick-note coming to an end, therefore I was only made aware it had run out when they suddenly stopped paying me my money.

I rectified the problem immediately and sent off the certificate.

In the meantime, I was desperate for money to pay my bills and to buy food, so I went up to the Job Centre (and I was really ill) and received an over the counter payment, a giro.

Now I had a DD set up to go out - and because I received a giro - as I was in dire straights, obviously I went overdrawn.

I have no arranged overdraft.

Now apparently Halifax have changed their banking charges, instead of a fixed fee - I get charged £5 for every day I am overdrawn

I thought I would be charged £30 - or £35 max, but I phoned them today, and have amassed £55 already - and will incurr £5 hereafter for every day I am overdrawn!

I get £100 fortnightly - there is no way I am able to pay off £55.

Is it lawful for them to do this?

How am I meant to run my bungalow, eat!!

Now I have called them, I am arranging for a friend to go and pay in the £14 I am overdrawn by the stop further charges, but the £55 - I just cannot afford to go a fortnight with only half my money!

Any advice?

I called Welfare rights, but as this is a financial, banking issue - and not a DWP issue, they couldn't help me.
Her knowledge was, the bank has the right to do as they choose. But surely if I need this money to literally survive.. they cannot take this money from me?

krisskross

emp_athy wrote: »

I have a physical/mental health problems and have been on Income Support (paid by them, but Incapacitated) for coming up to 4 years now.

My present issue is:

I was not sent a reminder letter about my sick-note coming to an end, therefore I was only made aware it had run out when they suddenly stopped paying me my money.

I rectified the problem immediately and sent off the certificate.

In the meantime, I was desperate for money to pay my bills and to buy food, so I went up to the Job Centre (and I was really ill) and received an over the counter payment, a giro.

Now I had a DD set up to go out - and because I received a giro - as I was in dire straights, obviously I went overdrawn.

I have no arranged overdraft.

Now apparently Halifax have changed their banking charges, instead of a fixed fee - I get charged £5 for every day I am overdrawn

I thought I would be charged £30 - or £35 max, but I phoned them today, and have amassed £55 already - and will incurr £5 hereafter for every day I am overdrawn!

I get £100 fortnightly - there is no way I am able to pay off £55.

Is it lawful for them to do this?

How am I meant to run my bungalow, eat!!

Now I have called them, I am arranging for a friend to go and pay in the £14 I am overdrawn by the stop further charges, but the £55 - I just cannot afford to go a fortnight with only half my money!

Any advice?

I called Welfare rights, but as this is a financial, banking issue - and not a DWP issue, they couldn't help me.
Her knowledge was, the bank has the right to do as they choose. But surely if I need this money to literally survive.. they cannot take this money from me?

Unfortunately paying in £14 will still leave the £55 charges as an overdraft continuing to accrue charges.

Have you had advise from CAB or someone about your benefits because £50 a week doesn't seem much. Are your housing costs additional to this? You need to cancel any direct debits and pay the bills in cash to ensure it doesn't happen again. And get a calendar pinned on the wall reminding you when you need to get another sickness certificate.

exil

The situation as I understand it is that a bank cannot deduct charges from a benefit payment as it is meant to be received by the claimant in full.

It doesn't mean that if you are on benefits, the bank can't levy charges on your account. In practical terms it makes no difference.

krisskross

exil wrote: »

The situation as I understand it is that a bank cannot deduct charges from a benefit payment as it is meant to be received by the claimant in full.

It doesn't mean that if you are on benefits, the bank can't levy charges on your account. In practical terms it makes no difference.

The banks can and will levy charges on any money paid into your account. It is simply income. Surely no one would expect banks to scrutinise every incoming payment to ascertain it's origin?

There is a clause called first right of appropriation which could be used. I expect there will be template letters if anyone wants to try this. I have a hazy recollection though that this cannot be used on a regular basis.

Loopy_Girl

krisskross wrote: »

Unfortunately paying in £14 will still leave the £55 charges as an overdraft continuing to accrue charges.

The Halifax/Bank of Scotland accounts don't work like that. As soon as she puts the £14 in she will be back in the black. They don't physically deduct the £5 a day. You get a statement at the end of the month for the previous month charges. So she will be liable to pay the £55 at the end of February

System

I tried telling Abbey that they'd bascially taken my whole housing benefit in charges, despite me saying i knew by law they couldn't,but they said they could as it doesn't cover HB. Luckily i was able to argue that they never informed me of the charges and cos they had never refunded me before they'd do as it as a one off.

mart9012

I'm heartened by the bank refunding charges so I'm giving it a go also. I have, to be honest, mismanaged my account dismally and the bank have charged me £316 in charges over January and February. I finally contacted the bank as the charges were becoming far too much for me to pay and live on my Income Support and Incapacity Benefit and they removed my personal limit (costing £22 for each five days I went over the limit) and increased my overdraft temporarily to allow me to reduce my overdraft down. I'm grateful as this, at least, stops any more large charges and lets me pay the normal interest charges instead. A refund or even a partial refund of charges would help me out in a big way so I'm hoping for some success.

I will keep you posted.

babychaneil

i am on benefits and last month my bank charged me tow lots of £25 bcos i was overdrawn twice and then at the end of the month charged me £120 for being overdrawn that month. surely that is not right. my bank does it every month and i am overdrawn every month. i work out what money comes in to what money goes out and i should be left with £140 every month but i am not, i am left overdrawn every month. what should i do to stop this???? HELP!!!!!!:mad: