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  • FIRST POST
    • Annabee
    • By Annabee 6th Aug 18, 3:40 PM
    • 594Posts
    • 448Thanks
    Annabee
    Relative wants to have their benefits paid to my account
    • #1
    • 6th Aug 18, 3:40 PM
    Relative wants to have their benefits paid to my account 6th Aug 18 at 3:40 PM
    It is a new claim (universal credit). The reason is they have broken their bank account, gone over the overdraft limit etc.

    But I am not very keen, could I get in trouble?
Page 2
    • 45002
    • By 45002 6th Aug 18, 11:09 PM
    • 434 Posts
    • 390 Thanks
    45002
    OP relative could get refused a basic bank account, the fact they already have a Bank account !



    They can and do run credit checks, so on and can refuse to open a account...






    .....
    MSE censored my signature Again, No reason given
    • Ames
    • By Ames 6th Aug 18, 11:25 PM
    • 17,414 Posts
    • 30,667 Thanks
    Ames
    OP relative could get refused a basic bank account, the fact they already have a Bank account !



    They can and do run credit checks, so on and can refuse to open a account...






    .....
    Originally posted by 45002
    Unless it's changed, then banks have to give someone a basic bank account. That's one with no overdraft facility. It's not wise to open it with a bank you owe money to though as they can take money from one account to pay off what you owe them on another.
    Unless I say otherwise 'you' means the general you not you specifically.
    • Sunny Intervals
    • By Sunny Intervals 6th Aug 18, 11:25 PM
    • 59 Posts
    • 262 Thanks
    Sunny Intervals
    OP relative could get refused a basic bank account, the fact they already have a Bank account !

    They can and do run credit checks, so on and can refuse to open a account...

    .....
    Originally posted by 45002

    As long as they have ID, they're unlikely to be refused a basic bank account. The whole point of them is that someone with bad credit can get one.

    https://www.moneysavingexpert.com/banking/basic-bank-accounts/


    ETA - I had to open one for similar reasons to the OP's friend: large OD and other debts, needed somewhere I could pay benefits without my OD eating them.
    Last edited by Sunny Intervals; 06-08-2018 at 11:30 PM.
    • 45002
    • By 45002 6th Aug 18, 11:46 PM
    • 434 Posts
    • 390 Thanks
    45002
    Banks can still refuse to open accounts, basic accounts, there is no guarantee they will open a account which some of you seam think there is.
    Last edited by 45002; 06-08-2018 at 11:49 PM.
    MSE censored my signature Again, No reason given
    • Ineededaname
    • By Ineededaname 7th Aug 18, 1:24 AM
    • 46 Posts
    • 19 Thanks
    Ineededaname
    There needs to be a very, very good reason to use someone elses account on an ongoing basis. Outside of being an appointee because the person is mentally incapable of managing their own affairs... highly unlikely.

    They may allow an initial payment after which they will insist on your relative sorting their own account. You'd need to go with them to the appointment or trust them with your bank card!

    I think they can make a payment through some kind of voucher system if there's really no available bank account.

    I'd just say no. Your relative needs to adult up and sort the problem. Why not sooner rather than later.
    • Pollycat
    • By Pollycat 7th Aug 18, 7:33 AM
    • 20,522 Posts
    • 55,191 Thanks
    Pollycat
    Thanks for all the replies. 'Broken my bank account' was the phrase my relative used. It's not the correct terminology I know, but isn't it self-explanatory?

    They won't be able to overdraw on my account, because I have no intention of giving them a bank card. They haven't asked either. I don't claim benefits so it can't affect that. What I will have to do is keep a careful record of the benefit payments that go in, then pass this on in cash to them. It is an absolute pain though, and I would really rather not do it. But they lost their job a few weeks ago and have only just got around to applying for benefits (to begin with they were not in a fit mental state to do it).

    If they have to wait to set up a basic bank account that will just delay things more I think? Have told them that I want them to get their own account asap though, and then tell the benefits office to move over the payments.
    Originally posted by Annabee
    Just curious why you asked for advice in the first place when you've decided to do it anyway - even though every reply you've received advises against it.
    • warby68
    • By warby68 7th Aug 18, 8:04 AM
    • 990 Posts
    • 9,787 Thanks
    warby68
    You would be better off helping them sort a new basic account and get advice for their debts rather than offering this 'easy option' for them but potential problem for you.

    I'm also curious why you asked the question but intend to go against every single response?

    It really doesn't take forever to set up a new account - are you sure they haven't tried already and have CIFAS markers or something like that?
    • Brookside88
    • By Brookside88 7th Aug 18, 8:29 AM
    • 246 Posts
    • 341 Thanks
    Brookside88
    Agree with what everyone else has said. Also, benefits are not a round number which means you'll have to go to your bank or the post office on a weekly or fortnightly basis to withdraw the exact amount since they don't want it to go into their bank. Ain't nobody got time for that
    Barclaycard CC 5,912.12/0___Virgin CC 5,536.81/5,536.81___Zopa Loan 5,680.83/4,906.17___Tesco CC 1,922.46/1,772.46___MBNA CC 6,323.15/5,696.73
    Total 19,838.56/17,912.17 (9.7%)
    • Prinzessilein
    • By Prinzessilein 7th Aug 18, 8:33 AM
    • 2,371 Posts
    • 10,961 Thanks
    Prinzessilein
    Another voice here against letting them have their money paid into your account.

    Quite aside from the possibility of some sort of fraud, there is the possibility of disagreement about your managing of the account (for example they insist you haven't given them this week/fortnight's money...you insist you have) which can cause long-term family issues....but mainly because they need to take responsibility for their own finances.

    A simple bank account is the way for your relative to go...I believe the Post Office do a very simple account for people in financial troubles.

    Also, if the original bank account is 'broken' due to unpaid overdrafts then maybe your relative should be encouraged to look at some sort of debt-management help (it is possible that the broken account is the tip of the iceberg...).
    • prowla
    • By prowla 7th Aug 18, 8:39 AM
    • 9,988 Posts
    • 8,156 Thanks
    prowla
    Thanks for all the replies. 'Broken my bank account' was the phrase my relative used. It's not the correct terminology I know, but isn't it self-explanatory?
    Originally posted by Annabee
    Yes, it was.
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