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Can banks take benefit money for charges?

Last post Wed, Aug 15 2007, 1:29 PM by conmankiller. 6 replies.
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  •  Wed, Aug 15 2007, 1:29 PM

    Re: Can banks take benefit money for charges?

    Sturap ---- Yes go get em ........ Your correct that law does apply to banks, it was brought into legislation to stop banks and organisations taking peoples benefits off them, as the law says that benefit is an amount that is a minimum amount of money decided by law and awarded for a claimant to live on, and banks or others are not allowed to deprive you of it, even the law itself can not deprive you of enough to live on.

    The banks can expect you to pay something but that has to be agreed, and they are not allowed to just dig in and help themselves, without the recipients express agreement and permission.

    • Post Points: 5
  •  Wed, Aug 15 2007, 10:39 AM

    Re: Can banks take benefit money for charges?

    Hi Sturap

    To quote something Conmankiller said to me the other day:     "Go get 'em."

    Good luck.

    • Post Points: 5
  •  Wed, Aug 15 2007, 9:51 AM

    Re: Can banks take benefit money for charges?

    Hi all,

     Many thanks for the info.  I love that word 'inalienable' ,your reference has given me a great deal of encouragement.  Now into battle!!!!   Jack Jones has suggested that 'companies' cannot claim benefit money but banks can.  I disagree, an Act of Parliament is meant for one and all or would have specifically said so.

    Thanks again guys,

    Sturap

    • Post Points: 35
  •  Tue, Aug 14 2007, 1:45 PM

    Re: Can banks take benefit money for charges?

    I think the law relates to companies trying to take a charge on your benefits, which is not allowed.  However if you are saying that you get your benefits paid into an account, then that is just money as far as the bank is concerned. 

    If you have a basic bank account then you shouldn't have any major bank charges, but if you have a normal account you are in the same position as the rest of us in that once your money is in the bank, and you owe them money, they can take it off you.

    • Post Points: 5
  •  Tue, Aug 14 2007, 1:35 PM

    Re: Can banks take benefit money for charges?

    sturap:

    Hi,

    Is there a specific regulation that should prevent Banks taking benefit money eg, registered disabled allowance, children's allowance etc for charges?

    Thanks,

    Sturap

    Hi Sturap

    On reading this, I would assume that the Bank have been taking your benefit money for their charges.

    I am at a loss for words that they have done this!!!  As CMK has informed you, they are not allowed to do this. 

    Demand your money back from the Bank NOW.  Yet another 'snake in the grass' money-grabbing trick the Banks are up to!!!

    • Post Points: 5
  •  Tue, Aug 14 2007, 1:12 PM

    Re: Can banks take benefit money for charges?

    They are not allowed to do this, and I have come across the rule that says they can't do it (and which can be quoted at them):

    Social Security Administration Act 1992
    Miscellaneous
    Certain benefit to be inalienable **

    187- Subject to the provisions of this Act, every assignment of, or charge on-
    (a)benefit as defined in section 122 of the Contributions and Benefits Act;
    (b)any income-related benefit; or
    (c)child benefit,
    and every agreement to assign or charge such benefit shall be void; and, on the bancrupcy of the beneficiary, such benefit shall not pass to any trustee or other person acting on behalf of his creditors.

    ** inalienable = not to be forfeited, or not transferable.


    Basically they can't take your benefit money for overdrafts or debts, and if they have you can ask for it back.

    If the bank staff argue, then insist on speaking to a manager - they know the rules.
    • Post Points: 65
  •  Tue, Aug 14 2007, 12:09 PM

    Can banks take benefit money for charges?

    Hi,

    Is there a specific regulation that should prevent Banks taking benefit money eg, registered disabled allowance, children's allowance etc for charges?

    Thanks,

    Sturap

    • Post Points: 35