Claim for charges taken from benefits

[steven4064]

I am taking a rest from suing NatWest to take on Halifax on behalf of a friend. This is slightly different from other bank charge claims because we are not claiming that the charges are unlawful contract penalties (although we believe they are) nor are we claiming they are unfair under the UTCCR 1999 (although we believe they are).

 

In this case, all his income comes from Income Support and Child Tax Credits. Therefore we are reclaiming the charges on the basis that the bank has no right make charges against money from the public purse given to support basic family needs - Social Security Administration Act 1996 and Tax Credits Act 2006.

 

Here is the draft Particulars of Claim

IN THE XXXXX COUNTY COURT

 

BETWEEN

 

Friend of Steven4064, CLAIMANT

 

AND

 

HALIFAX plc DEFENDANT

 

PARTICULARS OF CLAIM

 

1. The Claimant has an Account Number xxxxxxx, Bank Sort Code xxxxxx ("the Account") with the Defendant which was opened in September 2003.

2. During the period in which the Account has been operating the Defendant has automatically debited numerous charges to the Account in respect of referred Direct Debits. These charges have caused the Account to become overdrawn, which has in turn led to the Defendant debiting the Account with further charges. The Claimant understands that the Defendant contends that the charges were debited in accordance with the terms of the contract between itself and the Claimant.

 

3. A list of the charges (“the Schedule”) applied is attached to these Particulars of Claim.

4. Since August 2003, the Claimant’s entire income has been derived from Income Support and Child Benefit paid by the Department of Work and Pensions and Child Tax Credit paid by HM Revenue and Customs. This money does not belong to the Claimant but is public money to be spent on the basic needs of the Claimant and the Claimant’s family.

5. The Claimant contends that the charges debited to the Account and detailed in the Schedule constitute assignment by the Defendant and to the Defendant of moneys paid to the Claimant in state benefits and are therefore unlawful by virtue of

a) s187 Social Security Administration Act 1992 regarding Income Support and Child Benefit, and

b) s45 of the Tax Credits Act 2002 regarding Child Tax Credit.

6. The defendant has, in addition, levied interest on these charges which is also detailed in the Schedule.

 

7. Accordingly the Claimant claims:

a) the return of £xxxx (xxx Pounds Sterling) taken by the defendant in charges detailed in the Schedule and interest applied on the charges of £xxx (xxx Pounds Sterling and xx pence);

 

b) court costs;

 

c) interest under section 69 County Courts Act 1984 at a daily rate of 0.022% (8% per year) up to the date of judgement or earlier payment.

8. The Claimant also respectfully asks the court to make an order requiring the Defendant to cease making charges in contravention of s187 of the Social Security Administration Act 1992 and s 45 of the Tax Credits Act 2002.

I believe that the contents of these particulars of claim are true

Any comments gratefully received.

[kennythecelt]

I wish you and your friend every bit of good luck possible.

 

I come across an awful lot of people in this situation. Banks seem unaware of appropriation or disinclined to adhere to it. It causes untold misery and the states money is taken from the mouths of babes. Thats the reality.

 

Sincere good luck!!

[steven4064]

I come across an awful lot of people in this situation. Banks seem unaware of appropriation or disinclined to adhere to it. It causes untold misery and the states money is taken from the mouths of babes. Thats the reality.

That's the reason we are doing it. Thanks for the support.

[m00chie]

i've subscribed to this thread, will be very interested to see how it goes, good luck any help just holler and someone should come along and help:-)

[Aqualibrium]

All the best with this. I'm kind of wishing I had done the same, just for the principal as Nationwide were taking their charges from my Tax Credits, Child Tax Credit and Child Benefit. (settled now though on the standard basis of reclaiming)

 

The motivation for this claim, ie, the bank have no right to touch this money due to it being ESSENTIAL for families, proves how low they will stoop to make a profit. I don't think there's a judge in this country who could disagree with this. An acceptable level of charges could be argued for years, but there's no way benefit money should be debited, especially by disgustingly rich institutions like banks, who can afford a little lee-way for the less financially fortunate.

 

Who knows, maybe they will do like a charge chart/scale thingy, where the level of charge that's applied to you depends on which income threshold you match. I may be a away off on one here...

 

Anyway, GOOD LUCK to you and your friend! I'd say this is a more solid/straightfoward basis for a claim than disputing the unlawfulness of a charge, opinions on the latter are bound to vary, but I don't fancy a bank standing up in court and trying to justify taking 120 quid worth of charges off a single parent! Looks like you've got it well covered by the law too.

 

All the best

[deadlykiss]

wow im on benefits and knew nothing about this ,, hope it all goes well be nice to see how you fare

 

good luck

[1234debt]

gosh I wish I'd known you could do this before I started my claim!

 

Best of luck with everything!!

[**Tilly**]

i wish you and your friend good luck its about time the banks realised they cant keep

taking peoples only means to live on beneifits are given for a good reason and not for them to

further line their pockets. good luck to you both

[moneyhelp]

Yup - good luck from me too.

 

They took all my benefits too to pay my credit card £300 in one swoop!!!

[deadlykiss]

same here moneyhelp ,, they took off charges i went in and spoke with them explaining to them is the only money i had and could they plzz take a lil off each week ,, more or less told tough cookie

[moneyhelp]

I demanded ALL mine back and quoted the letter from here in the templates - they knew I was serious then

[kennythecelt]

Can everyone who has posted here please go to Stevens first post and complete the petition, assuming you are in agreement.

Stevens post has a link and it is easy to complete.

Any questions, please ask.

Thanks:) or here as easier

 

Click here to sign Downing Street petition on banks unlawfully taking claimants' benefits

[deadlykiss]

lol did not know about this place when i went in , lol but im claiming it back now

[deadlykiss]

petition signed

[Goldlady]

I got a 'go away our charges are allowed' letter from the Halifax then sent a similar one to the one above and got all my charges back within a couple of weeks! There was more money than the tax credit going into the account (not much) and I expected them to say they had taken the charges out of that. But no - they paid up - basically they are NOT ALLOWED to take benefit money and that includes WFTC and child benefit. I think this will still be the case in spite of the OFT situation.

[moneyhelp]

Can everyone who has posted here please go to Stevens first post and complete the petition, assuming you are in agreement.

Stevens post has a link and it is easy to complete.

Any questions, please ask.

Thanks:) or here as easier

 

Click here to sign Downing Street petition on banks unlawfully taking claimants' benefits

 

I am not comfortable signing anything on the www whilst I am claiming.

[tomterm8]

Steve, I would also include the other (normal) arguments.

 

However, you're sure to win:)

[**Tilly**]

signed

[kennythecelt]

I got a 'go away our charges are allowed' letter from the Halifax then sent a similar one to the one above and got all my charges back within a couple of weeks! There was more money than the tax credit going into the account (not much) and I expected them to say they had taken the charges out of that. But no - they paid up - basically they are NOT ALLOWED to take benefit money and that includes WFTC and child benefit. I think this will still be the case in spite of the OFT situation.

 

Glad it worked out for you Goldlady!!!

[steven4064]

Steve, I would also include the other (normal) arguments.

 

However, you're sure to win:)

We thought of that but decided not to so that it doesn't get stayed. We can go back and claim earlier charges (when my friend was earning) after the OFT case.

[vincymum]

been thinking of taking similar line in my case, vincymum v barclays post60. I read something similar re POC's on another website. So I'll be watching this thread with great interest.

Good luck to your friend. (If only I knew how to post a link!)

 

vincymum

[steven4064]

(If only I knew how to post a link!)

You'll find how to do that and lots of other things here

[tomterm8]

..

[stonedecroze]

Wish I had found this thread earlier. Signed petition and good luck !!!

[steven4064]

Wish I had found this thread earlier.

I only started it yesterday!