basic bank account charges

mini1here

hi can any one help i have a basic bank account for my income support,last week i went overdrawn by £4 now they say they will charge me £40 in charges can they do this

annettetabs

there is an Act of Parliament that Under section 187 of the Social Security Administration Act 1992: apparently, this makes it a criminal offence for banks to take bank charges out of the accounts of people who are entirely dependent on social security benefits.

so if your bank has taken charges out of your Benefits eg:

if you are in receipt of any of the following benefits.
Income Support
Tax Credits
Child Benefit
Job seekers allowance
Incapacity benefit
Disability living allowance
Attendance Allowance
CSA payments
Other DWP payments.

which means:
That the bank can not apply any charges to money received as benefit, and any such charges are unlawful and therefore disallowed.

mini1here

dose this still count for a direct debit charge by the bank on the same account

annettetabs

I would assume so. Maybe you could ring them or pop into your branch with this information and see what they say? Did you pay £4 in to your account to cover yourself?

mini1here

when the direct debit was taken out of the account i was £4 short but the money was in the account the next day

annettetabs

Okay, I also have a basic account (Step Account with Natwest) you do not mention who you bank with, but they have in the past when I went overdrawn by a couple of pound waivered the charges. I rang them and apologised for not realising my direct debit was going to be returned and they said that seeing as my account is usally in good order they would waiver the charge as a gesture of goodwill. I would assume that you have not had this happen in the past and suggest you either go into your branch or ring their telephone banking number and see what they can do, they will also see that your income support is the only way your account is credited. £40 is a lot of money to lose from your benefits. Good luck.

mini1here

ok thanks for all your help ill let you know monday how i get on

krisskross

The bank can levy charges on income derived solely from benefit. That Social Security Act is always quoted wrongly.

Best thing to do is phone and ask if they will waive the charge on this occasion. If it hasn't happened before then they possibly will.