Marc Gander - The Consumer Survival Handbook


A 220 page introduction to all things consumer related by our own BankFodder.

Includes energy companies, mobile phone providers, retailers, banks, insurance companies,debt collection agencies, reclaim companies, secondhand car sellers, cowboy garages, cowboy builders and all the rest who put their own profits before you.

£6.99



Patricia Pearl - Small Claims Procedure - A Practical Guide


An excellent guide for the layperson in how to use the County Court - a must if you are intending to start a claim.

£19.99 + £1.50 (P&P)


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  1. #1
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    Default Bank Charges Affecting Benefits?

    *whispers so no goverment bods hear this*
    Does anyone know if reclaiming bank charges can have an affect on your benefits? Im sure it wouldnt affect working/child tax credits, as this is money earned by you already, which was unlawfully taken. However I remember claiming HB and CTB a few years back, and you are required to provide bank statements, and declare all income, wherever the source. Income support/JSA is another one... Could this be a problem? Has anyone had any problems when claiming these beneifts, and the bank charge refund showing up on their statements??
    Im very curious to know....

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  2. #2
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    Default Re: Bank Charges Affecting Benefits?

    Very glad you are asking this question since I'm on H/B. Gonna have to do some reading because i intend to save the money i win in a high interest saving account for a short period and need to know what the savings freshold is before it affects your benefit. I'm not sure but i could argue that this is not income as such because the charges in most cases were taken from my benefit therefor it isn't an extra income i'm only getting back whats been taken from me. In a way, its almost like saying we can't give u benefit because you have taken out a loan even though you will have to pay this money!

    Will try to find a site that gives simple answers to these questions unless someone else answers.


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    Default Re: Bank Charges Affecting Benefits?

    I know - it seems simple to me, its money you have already had, and have claimed it back, just like getting a refund from a shop ! But I remember avidly what these people were like! Not the brightest buttons in the box... having to tell people how to do there job is just unbelieveable!

    I think the savings thing was around 8000 max, but i seem to remember reading something to say it was 3000 when it started to affect the claim. However if your claim was more than this, I would argue that this money is a refund, its not savings. You could possibly get it in an account for your child, or seperate it between family memebers etc! I would get my mum to hold it in an account for me, if i was in that situation!


  4. #4

    Default Re: Bank Charges Affecting Benefits?

    Income from such claims should not be taken into account as income or savings, since it is money that you have lost that you are legally due. Of course, you would need to speak to someone who knows about this to confirm this.

    HSBC Lloyds TSB contractual interest New Tax Credits coming for you? NTL/Virgin Media

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  5. #5
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    Default Re: Bank Charges Affecting Benefits?

    Thanks. having though some more, i thinks I'd have a prob if i decided to save it because at that point, i would start earning interest on the account and therefore it could be seen as income from that point onwards.

    I can just see the battle ahead as I've found them to be the most incompetent people ever. I'm still fighting an overpaymenticon from 2003 which they have been deducting from my H/B and as it turns out, they may have actually underpaid me. Thanks to this site I've now learnt to questions all sorts of financial authorities.


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    Default Re: Bank Charges Affecting Benefits?

    Child Tax credits/Child Benefit are not means tested - therefore any refund made would not affect these benefits.

    Housing Benefit and Council Tax benefits ARE means tested.
    The threshold for impact is any amount is 6000.
    Any savings (or accumulation of savings amounts) exceeding this threshold - means a pro-rata reduction in how the benefit amounts are calculated.
    1 must be added to your available weekly income for each additional 250 or part thereof in excess of 6000.
    If you have over 16000 in savings, unless in certain exceptional circumstances, you will not be entitled to any assistance.

    Hope this helps.
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  7. #7

    Default Re: Bank Charges Affecting Benefits?

    Bank refunds are NOT income. It is money that you have already declared (i.e. received 100 benefit, bank took 35 or earned 100 income after tax and bank took 35).

    Any interest you receive back IS counted as income so needs to be declared (i.e. 100 charges + 20 interest. Income is 20).

    Any compensation you receive as a result of a claim is also NOT income (i.e. you might receive 500 because they defaulted you by mistake). If you claim any benefit just let them know it is this and not income. They cannot do anything because the Inland Revenue have a special code for compensation payments so it is not counted as income.

    Remember, it is the Inland Revenue who decide what is income and what is not, not any benefit payers. They have to accept the government rules as applied through the IR. If the IR don't call it income, nobody else can.

    I had the same problem with council tax a few years ago and they asked where i got a large sum of money from (endowment compensation). I showed them the letter from the endowment company which stated they have told the Inland Revenue about this payment and i don't need to declare it as income. Then they asked what i did with it. I told them its not your place to ask. Bank charges fall into the same category.

    Hope this helps.

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    Default Re: Bank Charges Affecting Benefits?

    Thanks for that tifo - didn't know that.
    Makes my OH's case very interesting, as potential for a 7k claim, we were panicing about the 6k threshold for savings.

    Thank you!

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    GMAC - Sent DCA SAR 9th March 07 - confirmed not legally assigned.
    Waiting for GMAC to provide breakdown of charges and CCA under s79
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  9. #9

    Default Re: Bank Charges Affecting Benefits?

    Savings, of course, is also income which you have declared but have not spent. In a way, the benefit people could twist this around and say refunds are savings. They'll try anything to get themselves to pay you less.

    I don't know how the bank refund affects savings so please check up or maybe someone may come along and offer something. I personally haven't come across this problem as my claims are under 1k each.

    I suppose if you receive the money then move it somewhere else then you haven't saved it. Maybe you have creditors or family you have to pay back etc.

    But what i stated in my last post is also true.


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  11. #11
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    Default Re: Bank Charges Affecting Benefits?

    Thanks for that Pkea

    Looks like at lot of people will be making donations to charities/family members on receipt of large settlements then

    P

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    GMAC - Sent DCA SAR 9th March 07 - confirmed not legally assigned.
    Waiting for GMAC to provide breakdown of charges and CCA under s79
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    Alliance & Leicester - Final LBA 28/5/7 - then Court.
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  12. #12
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    Default Re: Bank Charges Affecting Benefits?

    Hi I am on Income support and have recently been affect by bank charges of 28 for me going over my limit of like 2.00 , these charges are coming of my benefit , I also have an overdraft would that affect me in getting my charges back.

    Please help dont know where to start


  13. #13
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    Default Re: Bank Charges Affecting Benefits?

    It kinda depends on the bank. Which bank are you with?

    If its just one charge then call the bank customer servicesicon and tell them that you are on benefits and that you would like the charge refunded. If they refuse (which they usually will) say that you want to make an official complaint. They will usually then agree to refund the charge rather than log a complaint.

    Let us know how you get on -


  14. #14
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    Default Re: Bank Charges Affecting Benefits?

    i am on

    carers allwance, income support and DLA. on my bank statemens it has my NI with dwp at the end.

    and back in round oct 06, by bank hsbc took most of it.

    was the bank Legally allowed to do that?

    after this happend my bank give me a overdraft of 500, now that has gone up to 1K

    after reading about all the posts about benfits beeing taken can the banks take your benfit money or not.


  15. #15
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    Default Re: Bank Charges Affecting Benefits?

    Quote Originally Posted by what_todo View Post
    i am on

    carers allwance, income support and DLA. on my bank statemens it has my NI with dwp at the end.

    and back in round oct 06, by bank hsbc took most of it.

    was the bank Legally allowed to do that?Yes, unfortunately they can.

    after this happend my bank give me a overdraft of 500, now that has gone up to 1K

    after reading about all the posts about benfits beeing taken can the banks take your benfit money or not.
    Yes they can and Steven064 has a thread on that topic



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