Reclaiming charges while on benefits/in hardship

[scatterheart]

Evening all,

I reclaimed charges successfully for myself and my mum earlier this year, and am now in the process of doing this for my mother in law, but the circumstances are rather different and now with the test case situation I'm not sure of the best way to go.

She has an 11 year old daughter and is also bringing up her grandson who is now 3. She is single and so can't work, her only income is benefits. She is always struggling financially and is often going a few pounds overdrawn and being charged £15 or £20 a time by Lloyds TSB.

Now I've heard of two scenarios which may be useful in her case, that banks are not allowed to take money from an account if your only income is benefits, and that the current stay on reclaiming does not apply in cases where people are in real hardship. Have I got the right idea here?

At the moment I have only sent the initial Subject Access Request and they have sent her statements and the standard letter saying no point reclaiming due to the test case etc. I haven't added up the costs yet, she lives in another city and I haven't been down since they arrived. I have not sent any letters to Lloyds regarding her being on benefits or in hardship, I'm not sure of how or at what point to do this.

The benefits she gets are Income Support, Council Tax Benefit, Child Benefit, Child Tax Credit. She also started buying her council house when she was married, but has since got divorced and so her mortgage has been frozen, the council are apparently paying the interest only, I'm not sure if this is Housing Benefit?).

Would really appreciate any advice or template letters regarding the benefits/hardship process, the sooner I can get this money back/stop these charges for her the better.

Thank you!

[zootscoot]

Hi Scatterheart,

The only benefits which a bank can not take charges from is direct payments payable to those who have been assessed as having a particular care need and the money is used to pay for that care directly.
With all other benefits payment the money becomes the customers to do spend as they wish.

Unfortunately the courts have not been too sympathetic with regards to lifting stays on the grounds of hardship. There has been more success in relation to hardship claims through FOS.

Once you have worked out what she is owed. Write to the bank requesting a refund and point out that her claim is one of hardship and therefore under the waiver conditions they are obliged to process her claim. If you do not have a positive response go to FOS and put in a complaint.

All the best

Zoot

[scatterheart]

Thanks for the help.

So I will total up the charges for the past 6 years as normal, and then with my letter requesting payment due to unfairness of charges, I will also include the fact that she is a hardship case and they must therefore process her request despite the stay. Is there a specific Act or legal recommendation that I should refer to here?

I have seen people mentioning filling in forms from their bank to stop charges being taken in future because they are on benefits. Does this only apply to certain ones then?

[Juslookin]

Use a right of appropriation letter to stop the banks taking the money

[zootscoot]

Is there a specific Act or legal recommendation that I should refer to here?

It is part of the FSA waiver agreement which the banks signed.

I have seen people mentioning filling in forms from their bank to stop charges being taken in future because they are on benefits. Does this only apply to certain ones then?

The bank may ask you to fill in a income and expenditure form to see if the claim is one of hardship.