Is the bank taking your Benefits ?

[Vampyra]

Just to update you all; I have had no reply at all from the bank regarding my email sent last Wednesday. This is also considering my local branch has a copy of the letter too.

 

I'm sure they will get back to me - never one to miss an opportunity to charge you for something, I have no doubt they will tell me the law doesn't apply to them and charge me for having to reply to me, or something!

[babybear39]

Bill them for your communication as well then

[AA99]

This is why all mine are SO and i am in control if iam stretched a bit one week i transfer it to the next. All my bills are paid up in lump sum payments and in as few payments as possible, between both water bills 5 payments have been made and all paid off now. water bill 1 for sewerage was £200+ water bill 2 was £200 and summing so one week i paid 3100 to bill one then 2nd week £100 to bill one then following week £100 to bill 2 then again £100 to bill 2 then the rest towards both bills.

 

I agree GM, but that is quite a lot to pay when your weekly income is just benefits. I wouldn't be able to pay those amounts. I spent 2 hours at my kitchen table today agreeing a repayment amount on my water bill arrears. They have only arisen from their own tariff increases in the last 2 years, not from my consumption but I have to pay an additional £10 p.m. for 2 years to repay it:confused: Don't remember getting an additional amount of benefit?

 

Just to update you all; I have had no reply at all from the bank regarding my email sent last Wednesday. This is also considering my local branch has a copy of the letter too.

 

I'm sure they will get back to me - never one to miss an opportunity to charge you for something, I have no doubt they will tell me the law doesn't apply to them and charge me for having to reply to me, or something!

 

 

Open any other account you can and get all your deposits paid into that and LEAVE your other bank. They're all hopefully hoping for the bank decision next week to go in their favour:cool:

[InformedSearcher]

'Vampyra' - I've learnt (the hard way) to send 'snail mail' rather than e-mails. With HSBC their replies to my messages on Internet Banking left a lot to be desired. I kept the envisaged 'snotty nosed' person tapping away telling me I'm not fit to burn.

 

'AA99' - Agreed totally regarding moving accounts. Bank accounts are automated systems and do not/are not setup to detect benefits. The fact is simple - charges get added a lot qquicker than a responce from the bank. Kind of 'we are in control' attitude and unless you have premium accounts you are 'farmed off' to the 3rd world countries (who ahve no control or authority) to deal with. Consider that the bank considers you to be unworthy of them and they are not bothered if you are not around except to extract charges wherever possible. Consider that people who have money get free lunches (and it's true) from my long gone days of wealth. Hey 'AA99' you have a kitchen table?! LOL

 

'TheGodMother' - I have to ask, why bother with S/O's at all? Just do an Excel spreadsheet with what needs to be paid and work from that. You can do an online payment when you can afford it that way rather that have 'hassle' from the bank. It's funny though that HSBC paid out straight away but LloydsTSB take 2 days - not so good if you are after paing something a bit smartish. I have to say I used to have loads of D/D's and S/O's that paid after I was paid (when I was employed) and then that 'day' came when there was no money! Nightmare I can assure you. The phone was 'hot' with calls from India!

 

Michael

[The GodMother]

Mine is completely outta my benefits to.

[AA99]

You got to stop them. New bank account, benefits straight in, priority bills straight out, FULL STOP:)

[buffyoo7]

hi went to bank today and found nearly all my child benefit gone on bank charges phoned bank and they said that they would pay back one of the charges but no more and that would take 7 to 10 days to go back into my acount i told them that was no good cos i had no money i also said to them that i thought it was ilegal to take benifits he went away and came back and said if i went to my branch and explained their they would let me withdraw the money i went to my branch and they said no so i asked to use their phone to talk to halifax again this time they said i was given wrong info and it was not ilegal for them to take benifits they said that once it enters into someones acount its clased as a credit and then they can take it is this right

thanks buffy

[InformedSearcher]

hi went to bank today and found nearly all my child benefit gone on bank charges phoned bank and they said that they would pay back one of the charges but no more and that would take 7 to 10 days to go back into my acount i told them that was no good cos i had no money i also said to them that i thought it was ilegal to take benifits he went away and came back and said if i went to my branch and explained their they would let me withdraw the money i went to my branch and they said no so i asked to use their phone to talk to halifax again this time they said i was given wrong info and it was not ilegal for them to take benifits they said that once it enters into someones acount its clased as a credit and then they can take it is this right

thanks buffy

 

I'd go back to the branch and this time a little bit more firm and maybe vocal. The worst thing a branch likes is to see someone sobbing in front of customers. The reality is that a credit can be put back into an account (as in reversal os charges) in a moment.

You seem to have been given wrong information as in 7/10 days. The branch should have called someone as they probably have no authority to refund charges as base level.

This is quite tongue in cheek but my mother in law (passed away long ago now sadly) refused to leave till they dealt with her fairly. She resembled 'Blanche' from Corrie and I tell you in the end they conformed. If you have kids then take them to the branch too. If you have a friend to go with you all the better. These are really last resorts but they normally work.

Sorry I'm not being too helpful here. Just what I would suggest in such a situation. Of course your next step should be to open a Basic Account elsewhere where there are no overdrafts and you could speak and ensure that anything that would get you into an overdarft situation to simply be returned without charge.

 

Michael

[AA99]

hi went to bank today and found nearly all my child benefit gone on bank charges phoned bank and they said that they would pay back one of the charges but no more and that would take 7 to 10 days to go back into my acount i told them that was no good cos i had no money i also said to them that i thought it was ilegal to take benifits he went away and came back and said if i went to my branch and explained their they would let me withdraw the money i went to my branch and they said no so i asked to use their phone to talk to halifax again this time they said i was given wrong info and it was not ilegal for them to take benifits they said that once it enters into someones acount its clased as a credit and then they can take it is this right

thanks buffy

 

 

Please just report them to all the authories. You can do it online, quick and easy, take heart

[babybear39]

A call from Trading Standards via consumer direct should have the desired effect

[Hacked_Off]

well i guess as of the court ruling today they can do what they like

[AA99]

well i guess as of the court ruling today they can do what they like

 

NO THEY CAN'T:evil: You still have plenty Consumer laws to protect you, especially if all your income is benefits. And Child Benefit payments are definitely not intended to pay bank charges:evil:

 

Open a quick, easy, online account with someone else and get your benefits transferred there, then you can get to your money before your existing bank can! I've just done it, and what a relief!

[Elmira452]

i've been told that banks cannot take bank fees you may occur from your child benefit or any other benefit you get is this true.

[The GodMother]

Yes and no.

 

They are not ment to take them but they do.

[citizenB]

i've been told that banks cannot take bank fees you may occur from your child benefit or any other benefit you get is this true.

 

They are not supposed to take money destined for priority bills such as utilities, council tax, rent/mortgage.

 

You would be best advised to set up a parachute account with another bank and have your benefits paid into the new account. Once the account is up and running, stop any Direct Debits, standing orders you have with the present bank.

[InformedSearcher]

I'm afraid the downside to all this is the time factor. Before a bank charges you a fee they will (or are supposed to) tell you the date it will be charged. If you get to that date the fees will be charged. The aim is to have them cancelled before that date and not wait till they are applied.

 

As 'CitizenB' perfectly states get a parachute account with a different bank! Allow time because government departments are not that fast changing bank payment details either.

 

Whilst we all comment on 'are they allowed/not allowed' I've never yet seen a case of this being challenged. Has anyone? Banks are commercial operations that do things, then if really forced, they 'might' back-off.

 

Michael

[AA99]

As 'CitizenB' perfectly states get a parachute account with a different bank! Allow time because government departments are not that fast changing bank payment details either.

 

My various benefit offices took the change of bank instruction over the phone and had them all switched within a week. Nearly all my benefits are paid weekly now into the new account.

 

There is a letter somewhere called something like Letter of Appropriation I think. You basically write to the bank, saying XXX of benefit will be credited on XXX and this is to pay for XXXX which will be debited on XXXXX.

 

[Scrapper]

Hi

 

I think it might fall into this category, but I might be wrong so please don't quote me.

 

I did however send a letter off for a friend of mine to his credit card company quoting this and they backed off and froze his account until he is back on his feet.

 

Social Security Administration Act 1992 Section 187:

187.—(1) Subject to the provision of this Act, every assignment of or charge on–

(a) benefit as defined in section 122 of the Contributions and Benefits Act; [3(aa) a jobseeker’s allowance;]

(b) any income-related benefit; or

© child benefit,

and every agreement to assign or charge such benefit shall be void;

 

Social Security Administration Act 1992 Section 187 forbids any organisation that is regulated by the banking code from taking payment from peoples benefits.

 

So if this happens again I would walk into the bank, ask for the manager and put this regulation in front of him/her and tell him/her in no uncertain terms that unless they refund it immediately you will contact Social Security and let them deal with it. Or go and see a solicitor as you are entitled to 30mins free advice and for a small fee they would even send a letter of complaint to your bank and I bet you a pound to a penny they wouldn't do it again.

 

What makes the matter worse is that the Halifax is 85% owned by the taxpayer and they still act like they can do whatever they like.

 

It's OK as long as they all kept their jobs while millions of other people suffered.

 

I'll stop ranting now sorry.

 

 

Hope that helps

Scrapper Coco

Edited November 29, 2009 by Scrapper

[The GodMother]

Good luck on that one as i can say for certain that some banks are ignoring that as its classed as a income.

[Scrapper]

That's fine I'm only advising what the law states and giving advice as it was required. It worked for my friend. What people chose to do with the information I provided is up to them.

 

The reason this doesn't work for most people is because 9 out of 10 banks do not know the law (FACT) and the lay person doesn't know their rights and they accept it as fact and give up at the first hurdle as they see banks as the authority and they must know what they are talking about (B*ll*cks they do). That's why they come to forums for advice.

 

Scrapper Coco

[The GodMother]

That's fine I'm only advising what the law states and giving advice as it was required. It worked for my friend. What people chose to do with the information I provided is up to them.

 

The reason this doesn't work for most people is because 9 out of 10 banks do not know the law (FACT) and the lay person doesn't know their rights and they accept it as fact and give up at the first hurdle as they see banks as the authority and they must know what they are talking about (B*ll*cks they do). That's why they come to forums for advice.

 

Scrapper Coco

 

 

I have been using that law since i have been on the forums and only once has the bank given me my money back as a guesture of good will and even in writing stated the fact that we ware in benefits its classed as a income as the letters state

 

What the law says you need to live on when u get the entitlement letter.

[Hacked_Off]

NO THEY CAN'T:evil: You still have plenty Consumer laws to protect you, especially if all your income is benefits. And Child Benefit payments are definitely not intended to pay bank charges:evil:

 

Open a quick, easy, online account with someone else and get your benefits transferred there, then you can get to your money before your existing bank can! I've just done it, and what a relief!

 

i was on jsa. I went to the bank like i do every month. Paid in money then did my standing order. The money was there. I checked. Like i do every month. 3 days later i get a letter telling me "insufficiant funds.....38 charge...." They refuse to accept the money was there, even though i have a time/dated receipt and the reciept from paying the money into there machines. They left me with nothing for 2 weeks. Now just to add salt to the wound they are ringing me up to 3 times a day and writing offering "to mke an appontment with a money advisor for advice on how to avoid further charges":-x

 

Ive written to them several times. Ive been in. Ive spoken to the manager. Ive put a complaint in with the fos. But the facts are they refuse to pay it back and yes they CAN do what they like. If i didnt need a bank account for my wages to go into i would close it and never have one again.

[AA99]

Well done Scrapper, am sure that is one of the laws and yes, it is worth pointing out to the bank! The other letter I referred to is

 

You may be able to prevent this by serving them with a letter asserting your right of appropriation.

It's in the templates library

The bank are obliged to respect your right of appropriation - but sometimes they need to be forced.

[AA99]

Shame for that Zararh:cry: My son is on JSA and they have done something similar. I am about to take them on, so watch this space:-x:D:D:D

[charley2212]

Hi Godmother Did You Get My Pm ? Ref Mcol Dca