HSBC is taking JSA to pay off overdraft

[nowayjose]

Hope someone can help me with this one:

My question is ... can a bank take my sons JSA to pay his overdraft and leave him with no money to live on for the next fortnight.

He was £103 o/d last week and as he has only recently become unemployed we both went into the bank and asked for a temporary o/d facility for around 6 months until he returns to work... he was turned down flat and was told that if he reduced his o/d they would look at his situation again (doh)....I asked at the time that if his JSA goes in would he be able to draw money out. I was told to let the payment go in and they would 'sort something out'.
Well his money went in today which left him £7 o/d.Tried to take out money but insufficient funds message.. went back to the bank and saw the same woman who was very unhelpful and said that the manager was in a meeting all afternoon and she was unable to authorise it. The best she could suggest was going to another branch and try there...
I told her we will return in the morning and I m hoping someone can give me some guns to fire when I get down there... Can they really leave someone without a penny for a fortnight, surely JSA is the minimum amount a person is allowed to live on..
Any help appreciated

NWJxx

[dpick]

Originally Posted by nowayjose

Hope someone can help me with this one:

My question is ... can a bank take my sons JSA to pay his overdraft and leave him with no money to live on for the next fortnight.

He was £103 o/d last week and as he has only recently become unemployed we both went into the bank and asked for a temporary o/d facility for around 6 months until he returns to work... he was turned down flat and was told that if he reduced his o/d they would look at his situation again (doh)....I asked at the time that if his JSA goes in would he be able to draw money out. I was told to let the payment go in and they would 'sort something out'.
Well his money went in today which left him £7 o/d.Tried to take out money but insufficient funds message.. went back to the bank and saw the same woman who was very unhelpful and said that the manager was in a meeting all afternoon and she was unable to authorise it. The best she could suggest was going to another branch and try there...
I told her we will return in the morning and I m hoping someone can give me some guns to fire when I get down there... Can they really leave someone without a penny for a fortnight, surely JSA is the minimum amount a person is allowed to live on..
Any help appreciated

NWJxx

Hi follow this link and there is a letter to send to bank.

Though from experence I would say that most banks take no notice, my advice would be to open a step account with a different bank for his JS and then pay as much as he can afford of this overdraft.

Is the bank taking your Benefits ?

[Conniff]

Banks (and others) can't take benefits. JSA is not a benefit.

[Mrs_Ryan]

Its not a benefit??? SInce when???

[Conniff]

I'll try and find the ref where I read it, I think they (government), class it as an allowance and not a benefit.

[nowayjose]

Well whether or not its a benefit or an allowance HSBC agreed to give my son £50 to live on for the next fortnight...asked to speak to the manager and was told they were very generous to give that and most banks would not give him anything to live on... He also said that he will take the remaining balance out of his next payment.....( I dont think so.. it will be a giro or another account opened sharpish)

[Conniff]

And I agree with you.

The banks seem to be using this so called credit crunch to make as much as they can even though their profits are at record levels. I think it matches the governments con in using the 'green' excuse to up the price of everything and reduce the pay increases allowed.

[patdavies]

Originally Posted by Conniff

I'll try and find the ref where I read it, I think they (government), class it as an allowance and not a benefit.

Is the clue not in the name?
JSA = Job Seeker's Allowance

[Mrs_Ryan]

oh is it??? sorry, wasnt being funny or anything! I just always thought it was classed as a benefit.Can see the logic in that but would DLA - Disability Living Allowance - then also be classed in the same way?

[Conniff]

Originally Posted by patdavies

Is the clue not in the name?
JSA = Job Seeker's Allowance

Being a government payment, they can make the word mean whatever they want it to mean you should know that.

[Woozel]

Your son could open a Post Office card account to have his JSA paid into. This means that he will not be able go overdrawn when he withdraws his money, and the bank can't swallow it as soon as it gets paid in. He can pay what he can when he can to the bank.

[Woozel]

Originally Posted by nowayjose

Well whether or not its a benefit or an allowance HSBC agreed to give my son £50 to live on for the next fortnight...asked to speak to the manager and was told they were very generous to give that and most banks would not give him anything to live on... He also said that he will take the remaining balance out of his next payment.....( I dont think so.. it will be a giro or another account opened sharpish)

Originally Posted by Woozel

Your son could open a Post Office card account to have his JSA paid into. This means that he will not be able go overdrawn when he withdraws his money, and the bank can't swallow it as soon as it gets paid in. He can pay what he can when he can to the bank.

If he contacts the jobcentre in the meantime, they should be able to pay him by giro until his PO account (or other) is opened.

[Zamzara]

Where is the regulation that says they can't take benefits?

[dpick]

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

Here also is the legislation that can be quoted if the benefits that fall within this act apply to you.
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 bankruptcy of the beneficiary, such benefit shall not pass to any trustee or other person acting on behalf of his creditors

dpick

[Zamzara]

Trying to claim that JSA is not a benefit sounds like an amazing stretch of taking things too literally — see here for example:

Jobcentre Plus - Working Age Benefits Jobseeker's Allowance

Working Age Benefits

Jobseeker's Allowance is the main benefit for people who are out of work.

[adamrao]

First of All JSA (Income Base) is a BENEFIT
and JSA (Contribution Base) is NOT a BENEFIT (if you've paid sufficient National Insurance contributions)

Okay back to the topic - Please tell you son to contact DWP and ask them to send Post Office Account referal form. Once the PO is active, change JSA money to his PO acount. Alternatively you can ask another bank to open a basic account. HSBC cant recover their money from your son's JSA but as they are recieving money in their bank then they can keep the money to settle the account.

Hope this answers the question.