Thread: My bank says they have the right to take my job seekers allowance

I have just had a £38 charge for returned DD which has been taken from my job seekers allowance, income based. I asked the bank to return it under the ‘right of appropriation’

They phoned back after speaking with head office and said … 'if it was a child benefit or child tax credit payment they would return it, but because it is job seekers allowance and for an adult that they have every right to take it'. I mentioned the social security administration act.

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 bankruptcy of the beneficiary, such benefit shall not pass to any trustee or other person acting on behalf of his creditors

But she insisted that they can take JSA. She asked me to post a copy of this and would get back to me. After reading lots of posts about banks taking benefits, I thought all benefits were covered and not just child related benefits?
Can anyone clarify this for me please? many thanks.

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Hi thanks for your reply.
I did try asking nicely that they return the charges but she wasn’t having any of it!

No offence taken!-sorry if I came across that way! I’m not sure about calling back, I called my branch and think I did speak to the person most likely to help…and she wasn’t very helpful-she seemed delighted to inform me that they could take my benefit! She went on to say I should put my complaint writing..

Thanks Gemspan, I will contact benefits office on Monday, and local MP. I must admit I was upset at my banks response, I only get £57 JSA each week so losing £38 of it is quite shocking!

I don’t understand why they say they are allowed to take charges from JSA but not child related benefits? I do have a child and he will be affected by the loss of income too, I mentioned this to her but she said the JSA was my money-so they could take it!
many thanks for your replies.

thanks bottomburp! I read the link you posted above, it will help me to put a letter together, and thankyou for your offer of help-much appreciated
I had hoped my bank would refund the charge immediately-wishful thinking!- I was too upset to call them back.. worrying about how to get through the coming week.. I hope they will refund when they receive my letter.
best wishes to you, and thanks for your replies x

Gemspan thank-you so much for your words of support, I felt quite distraught today when I checked my balance. I was saddened by my banks attitude, I felt like a beggar having to explain my desperate need for this money, (its hard enough having to go and sign on for it in the first place) and after listening carefully she callously told me ‘we can take your JSA, so we have’ even though I told her I have a child to support. I don’t know what shocked me more, the charge or their attitude! (Incidentally my bank is RBS)

I have read other post about banks taking benefits and you are right, it is appalling, the benefits paid are the basic amount the government says a person gets to live on-so banks are definitely putting people under the poverty line, and that includes children.

I have had charges before, but only recently found out that I could reclaim them. I am reading and reading lots of posts in order to be confident of what I am doing, and many thanks to the people who work on this site and take the time to give advice and support!

I will ask the benefits office for a crisis loan, that’s a great idea, I hadn’t thought of that. That will take care of things immediately, and gives me some breathing space to pursue the bank. Now I can sleep tonight!
Best wishes to you x

Thanks again bottomburp-great name by the way!! My bank is RBS; I do have some other charges to claim back, so looking forward to getting some of my money back.
I am kind of snowed in at the moment- so I hope to get out tomorrow and post my letter as my local branch is quite far, that’s a good idea about proof of postage.

I get paid fortnightly, so the next payment is not due till week after next. I will also send a letter of appropriation to cover each fortnights payments, as she did say they wouldn’t take charges out of child tax credits or child benefit so I only need to protect the JSA payments...if that makes sense! x

Hi Gemspan,
Loving your suggestions! I think I will give this a go…it would be worth letting them know I am not happy to accept what they have said to me (ok…secretly hoping if I talk to the same person she squirms a bit !!)

I am sorry you have been through a tough time too, Christmas is the worst time though...but it happens so quickly…one or two charges and everything just goes belly up. I see you have started MCOL against BOS, lots of luck and best wishes on your claim, hope it is settled soon.

I know what you mean about this site, I am a bit of a newbie here, but soaking in information like a sponge!!
I probably would have just sat sobbing… and starving, if this had happened a few weeks ago…now I’m feeling all empowered!! thankyou x

Hi there,
My claim is against A&L but,had a similar situation to yours with the bank swallowing my benefits (DLA and child benefit) until I came across this site.

Following a very stressful conversation with the bank after being left with nil,I called the benefits agency and they arranged payment by giro until I sorted another account.So do everything Gemspan has advised. I opened a basic account 4 weeks ago with Nationwide and my benefit now goes there whilst I deal with my claim.

My bank have been doing this for the last 3 years (when I first got sick-heart problems) and I thought it was allowed seeing as it was my overdraft.
I have followed the advice from some very helpful people on this site and if you do the same,you will get through.Each time I encounter a problem, I put it on here and the help is fantastic.

All the best

Thank you everyone for your kind thoughts and words of support, it is very much appreciated.
Bathgatebuyer I cant believe how much you had to pay in charges-that is shocking, it must have been awful. I am so glad you got it all back, especially with interest too, that must have felt great! Thanks for your good luck wishes and my best to you on your claims with Rbos credit card.

Annie, I have visions of the bailiffs going round to Halifax, whipping their stationary and chairs! I’m sure I read somewhere that this did happen to a bank I think….sorry don’t know where the thread is or I would post it (once I work out how to do that of course!! ) I don’t know why they string things out; they should just cough up and save us the hassle! Best wishes on your claim, my thoughts are with you.

Angel49, I know what you mean about stressful conversations with the bank. They waffle on about what they are entitled to do but we are left thinking.. how I am going to survive/pay a bill... and the repercussions which inevitably occur. I will definitely be speaking to the benefits agency when they open on Monday, I did think about opening a basic account, I have an overdraft too-a big fat student one! I must admit I am worried the bank might close my account-I have been with them for over 20yrs but I don’t expect that counts for anything!! Sorry to hear about your heart problems…that just make what they have done so much worse, to take from someone who is ill, it’s appalling. Sincerest best wishes to you and thank you for your support.

BB thank you for posting all those links, that’s kind of you. Wow the third one is a whopper! I have all my statements, so looking at spreadsheets to work it out. I haven’t used one before so I hope I can get my non-numerical head around it!
I agree about what you said about the banks hitting the most vulnerable. Having to plead for your small living allowance back, and being refused, can’t do them any favours. I will include all the benefit payments in the letter of appropriation, thank you that is a good point, best to cover everything. And good idea about getting the payments weekly, when the money comes in it seems so much more than it actually is.Making it stretch a fortnight is impossible, and extra difficult when week two is the week I don’t get tax credits or child benefit either-and wouldn’t you know it, that happens to be next week!
I do remember the days of no internet…we all suffered individually-its amazing what crowd power can achieve!

I did have a thought, if my bank says it won’t take charges from child tax credits or child benefit-does that include people not on benefits too? So if you happen to have a charge taken when one of these benefits is paid- it should automatically be refunded?

Also, the more I read about the banks behaviour toward people on benefits, the more I think perhaps the DWP should step in firmly and speak up on behalf of their customers. After all direct payments were set up supposedly for the benefit of both sides?

If it hadn’t been for this site I would have just accepted the charge and that’s not right is it?-what about all the poor souls who don’t know about it? I don’t think we should have to fight banks for the basic amount needed to live. (Oh dear think this empowerment thing is going to my head!!-time for a cup of tea!-I’m starting to scare myself!!)

Thanks to you all!
Ella x