I expect these stories are heard all the time, but mine is genuine. I'm at a loss as to what to do for the best at the moment but compliance seems to offer several solutions, firstly to transfer the money back into my Brothers account; secondly to come off of Income support then pay back any overpayment if asked. On the first option I don't feel it would be a solution because they will just say it looks like I am now hiding the money in my Brothers account and nothing will be gained. Another reason not to transfer it is because all the interest paid so far (will be clawed back by the bank from the original investment and that will be about 20 months at an average of £90 pm, beside that, I think I should honor the agreement I made with my Brother. I'm leaning towards the following solution - I'm certainly not going to admit to it being my money when I know it isn't but I may opt to come off of Income support and offer back any 'overpayment'

It was done online as I remember.It would not have made any sense for him to have set up another account in the same bank because we believed the government only gave compensation on a 'per bank' customer and not to accounts held by the same person in the same bank.He could have opened another account with a different bank but he was so worried about events in the banking sector and the time it takes to open a bank account that he opted to open an account under my name.This was convenient for both of us as I had the interest each month to pay for transaction over the Internet etc and even after 15 months of opening that account the amount of Interest after I paid out for purchases never reached more that £200 plus. I paid him from my Post Office account that my Income support and carers allowance was paid into. This arrangement meant that I would do less running around as I would go to the Post Office once every few weeks instead of once a week, a similar principle same applies to the building society, and when looking after someone who has Dementia and who could be a danger to themselves, time saved is essential.

Just recently I was called in to see the compliance Officer at the local Jobcentre. Basically she said that she had information that suggested I had more savings than I declared when I applied for Carers Allowance and Income support, which I have been receiving since April this year. She pointed out the evidence on her computer monitor that I had received £112 (?) per month in interest from HBoS. I admitted that I had an account that I didn't declare and explained that the money wasn't mine. To cut a long story short, I explained to her that my Brother put the money(£34k) into my account to avoid any loss due to a bank collapse. The £34k was excess above the £85k what the Government would compensate for in the event of a bank collapse. It was convenient for him and myself to do it his way; him because he didn't want to wait to open a new account with a different bank and the time it took and me because I could have the interest for my own use and pay him back from my Post Office account where my carers allowance and income support was paid in. For me, this meant that I didn't have to make regular trips to the post office and bank to either collect or deposit money and so save on journeys when I was caring for someone with Alzheimer's and who is too much of a danger to themselves to be left alone. The compliance Officer suspended my Income Support and gave me a letter to post back to her with any proof of what I said is true or to tell her what I intended to do, such as come off of income support, transfer the money back into his account or spend it until it is below £6k. I can prove from my brothers accounts that the money came from his account, that it was transferred at the correct time with the same amounts going into my account and was done to reduce his account to the £85k compensation limit Some questions I would like answered are: 1) How did they find out about an account I never told them about - was it the Inland Revenue and if so was I entitled to be protected under the data protection act? 2) Is the onus of proof on them to prove it is my money? After all, a person named on a vehicle log book is not necessarily the legal owner or having an MOT doesn't mean to say a car is roadworthy. 3)Has anyone else been in simmilar circumstances and what was rthe outcome? What are my options and what would you do in my position? I can't spend it because it isn't mine. It seems to me that if I transfer the money back they will just think I'm playing games and they will still assume it's my money but just hidden in another account in my Brothers name. Besides this, the money is in a fixed 3 year term and my Brother thinks that if I was to transfer the money back to him all the interest I have received so far will have to be repaid, and thats about 20 months worth at an average of £90 per month. If I come off of Income support what would happen next? Should I maintain that it is not my money and to hell with the consequences? TIA