Is CTC counted as a benefit?

[Emma1973]

Some others may have seen my thread on not being able to claim anything whilst waiting for my new job.
So for now I only have my CTC and Child Benefit going in my bank account, well the bank has taken a charge out, which leaves me with with £27 CTC left, and then I get CB on Tuesday.

Now I know the bank cant take charges out of benefits, but does CTC count as one, therefore they cant take it?
I will try and ring the bank tomorrow, but I know they aint going to refund the charges, and I wont be able to get a temporary overdraft as I only have a basic.
Honestly, thought it was bad enough that I'd only have CTC to live on, now the bank have taken half of it! Mad

[BoSBoY]

Not sure what bank your with but most banks will take charges out of any funds held in the account. You could call and explain your situation and they might refund a few. Did you not get a letter to advise when they were being debited? Its always easier to get a charge removed before it had been taken.

[seftonview]

The banks cannot take charges from benefits or tax credits, this is known as arresetment of benefit.

The relevnt enactment is s.45 of the Tax Credits Act (2002):-

45
Inalienability
(1)
Every assignment of or charge on a tax credit, and every agreement to assign or charge a tax credit, is void; and, on the bankruptcy of a person entitled to a tax credit, the entitlement to the tax credit does not pass to any trustee or other person acting on behalf of his creditors.

(2)
In the application of subsection (1) to Scotland— (a)
the reference to assignment is to assignation ( “assign” being construed accordingly), and

(b)
the reference to the bankruptcy of a person is to the sequestration of his estate or the appointment on his estate of a judicial factor under section 41 of the Solicitors (Scotland) Act 1980 (c. 46).

[Emma1973]

Thank you sefton, I'll give them a ring tomorrow and quote the relevant bits at them. They are also going to take another lot next Monday, so will advise them that they cant do that either.

I'm in the unfortunate position of being stuck in the charges loop with no way out of it at the moment!

[seftonview]

Are you able to record the call? I would send them a letter marked urgent as well.

[dx100uk]

is it not also covered by this:

Right of Appropriation - Stop the bank from taking your money

dx

[Emma1973]

Well, its kind of sorted! Charges date back to cheques I wrote 2 months ago when I had a regular income! People have only just put them into the bank! Mad
So I've managed to get 2 charges stopped, but couldnt get the one thats just come out, which is due to an unauthorised overdaft, quite how I got an unauthorised overdraft when I only have a basic account I've no idea!
But theres another two, due to come out on the 16th September (the last cheque) and one on the 30th September, which is the letter they wrote to me to inform me off the unauthorised overdraft!
Is it worth writing a letter of appropriation for these 2? Its getting a bit difficult when you only have £50 a week tax credits going in and £38 of that is disappearing in charges!

[seftonview]

I personally would not argue first right of appropriation, it will only overcomplicate things.

The arrestment of beneifts argument is absolute and leaves them no wiggle room.

[Zamzara]

Personally I'm very dubious that charge in this context means bank charge. Is there any case law where it was held a bank cannot do this?

[seftonview]

Originally Posted by Zamzara

Personally I'm very dubious that charge in this context means bank charge. Is there any case law where it was held a bank cannot do this?

'Charge' is not defined within the Act, so it is assumed to have its every day meaning.

charg·ing, noun
–verb (used with object)

1.to impose or ask as a price or fee: That store charges $25 for leather gloves. 2.to impose on or ask of (someone) a price or fee: He didn't charge me for it. 3.to defer payment for (a purchase) until a bill is rendered by the creditor: The store let me charge the coat. 4.to hold liable for payment; enter a debit against.

...

–verb (used without object)

22.to place the price of a thing to one's debit.
23.to require payment: to charge for a service.
24.to make a debit, as in an account.

...

–noun 26.expense or cost: improvements made at a tenant's own charge. 27.a fee or price charged: a charge of three dollars for admission. 28.a pecuniary burden, encumbrance, tax, or lien; cost; expense; liability to pay: After his death there were many charges on his estate.

Source: charge - Definitions from Dictionary.com