Bank taken all my benefits.

[pulse90]

Hi, I have had advice with the CCCS re my debts from various creditors through being off work due to a car accident last year. since then I have reached retirement age and now receive a pension, I fought for pension credit too for 7 months, which I have only just received a backdated payment from them. Due to living on the poverty line and trying to pay my monthly agreements, I have found it hard to manage. I have been bullied by the said companies, suffered from terrible depression and feel like giving up!!!!! To top it all, I have just found out that Barclaycard have taken ALL my backdated money without my consent, out of my account, now I do not have a penny to my name and do not know what to do!! I have NO MONEY to live on and none left to pay anyone else. PLEASE HELP I AM AT MY WITS END, can I get it back??????????

I am so stressed, so dont know if this made sense

Thank you

[jdes26]

U need to send right of proportion letter asap or ring them to let them know the situation and tell them it's ur right to reclaim money back

u will find letter in library

[dx100uk]

4 threads merged

 

there was only the need to start ONE.....

 

dx

[dx100uk]

ring them and demand it back

 

dx

[alfwithhair]

Have a read thought this

http://www.consumeractiongroup.co.uk/forum/showthread.php?36790-Is-the-bank-taking-your-Benefits

 

You also need to open another account with a bank that has no association with any of your creditor. Get all your money from all sources paid in to the new account, that way YOU have control over it.

 

If you don't open another account this will happen again and again everytime your benefits are paid in.

[pulse90]

Sorry, but so stressed, didn't mean to.

[pulse90]

Thank you for your reply, I have been advised that they are NOT allowed to take benefit money, is this correct? I was already paying them a monthly repayment plan through a DCA, even the DCA have said they need to look into it as they also do not understand how or why the bank has done this, when they were collecting the money on the Banks behalf???

I have tried to call the bank, but they have basically told me to sling my hook!!!!!

[alfwithhair]

Get the right of appropriation letter off to the bank (letter is in the link on my post above)

Get another account opened and get everything paid in to that one.

 

Barclays have a legal right under the 'right to offest rule' to pay outstanding debt within the same banking group from monies held in ANY account within that group (ie Barclaycard) but not from state benefits

 

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

©child benefit,

and every agreement to assign or charge such benefit shall be void; and, on the bancrupcy of the beneficiary, such benefit shall not pass to any trustee or other person acting on behalf of his creditors.

 

** inaliable = not to be forfeited.

------------------------------------------------

Basically they can't take your benefit money for overdrafts or debts, and if they have you can demand it back !

 

Contact the Benefits Processing Centre that deals with your payments and tell them the bank has taken ALL your benefits and you have nothing to live on.

[pulse90]

Thank you so much, will the DWP be able to assist then?

Thanking you

[pulse90]

Have just rang the DWP and they said that the bank can just take the money (((( What do I do now???

[pulse90]

Have just rang the DWP and they said that the bank can just take the money (((( What do I do now???

My original post

I have reached retirement age and now receive a pension, I fought for pension credit too for 7 months, which I have only just received a backdated payment from them. Due to living on the poverty line and trying to pay my monthly agreements, I have found it hard to manage. I have been bullied by the said companies, suffered from terrible depression and feel like giving up!!!!! To top it all, I have just found out that Barclaycard have taken ALL my backdated money without my consent, out of my account, now I do not have a penny to my name and do not know what to do!! I have NO MONEY to live on and none left to pay anyone else.

 

I was already paying them a monthly repayment plan through a DCA, even the DCA have said they need to look into it as they also do not understand how or why the bank has done this, when they were collecting the money on the Banks behalf???

I have tried to call the bank, but they have basically told me to sling my hook!!!!!

[teaboy2]

Have just rang the DWP and they said that the bank can just take the money (((( What do I do now???

My original post

I have reached retirement age and now receive a pension, I fought for pension credit too for 7 months, which I have only just received a backdated payment from them. Due to living on the poverty line and trying to pay my monthly agreements, I have found it hard to manage. I have been bullied by the said companies, suffered from terrible depression and feel like giving up!!!!! To top it all, I have just found out that Barclaycard have taken ALL my backdated money without my consent, out of my account, now I do not have a penny to my name and do not know what to do!! I have NO MONEY to live on and none left to pay anyone else.

 

I was already paying them a monthly repayment plan through a DCA, even the DCA have said they need to look into it as they also do not understand how or why the bank has done this, when they were collecting the money on the Banks behalf???

I have tried to call the bank, but they have basically told me to sling my hook!!!!!

 

Pulse i have sent a request to the site team to create a new thread for you, that way you will get the help and advice you need. where as your post would actually get lost on this thread. Will chip in with advice once your post has been put in its own new thread.

[cerberusalert]

Posts moved to the debt collection forum& new thread created.

[teaboy2]

Right Pulse.

 

What we need to know is the following:

 

Banks Name?

DCA's?

What the Debt was for i.e. Credit Card, Loan, Bank Charges?

 

Then we can advise accordingly.

 

@Cerberusalert

 

Thanks

[Desperate Daniella]

Hi Pulse,

 

If you go back to the other thread, I've answered you there, about calling FOS immediately. They have helped me get my money back within hours when barclaycard did the same to me on several occasions.

 

Secondly, I suggested you should open a basic bank account. You can set one up at the Co-operative bank over the phone. Get the benefits paid there, and barclaycard won't be able to touch them.

 

DD

[cerberusalert]

Threads merged.

 

Please keep to one thread then people will be able to see what advice has already been given.

[teaboy2]

If this is a barclaycard debt. then the bank has unlawfully taken the money in breach of -

 

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

©child benefit,

and every agreement to assign or charge such benefit shall be void; and, on the bancrupcy of the beneficiary, such benefit shall not pass to any trustee or other person acting on behalf of his creditors.

 

** inaliable = not to be forfeited.

 

As stated by Alfwithhair in an earlier post.

 

They are only entitled to take your benefits to cover bank charges (not covered by section 187 apparently though i argue differently), not credit card debts or any other form of debt. So you need to write to them that taking benefits payments from your bank account to setoff against a debt for which you already have a repayment plan in place with named DCA, is unlawful and a breach of section 187 of the Social Administration Act 1992 - which makes it quite clear that monies paid as benefits are not to be charged or assigned to debts that are under an agreement (i.e. consumer credit agreements). Therefore your taking money paid to my account as benefits is theft.

[Desperate Daniella]

Yes, it is, and they are not allowed to do it, but that doesn't stop barclaycard. You could tell them you and your child would starve, and they wouldn't give a damn and would still take the money and get away with it if they could, and no doubt they often do.

 

Sorry, cerberusalert, the advice I gave on the other thread was that the bank's right to offset does not actually allow them to take any money before priority debts/payments are taken into account, and that these are: mortgage/rent, council tax, tv licence, utility bills, travel to and from work (if applicable) and food. The FOS helped me when barclaycard did this, and as soon as I quoted the FOS reference number to barclaycard they backed down immediately. One cagger also got about £7,000 refunded within a couple of days when the bank took this money which had been paid into his account for an insurance claim. I can't remember if it was barclaycard or another bank. His argument was that without the £7,000 he could not have the repair work done on a flat which he owned and would therefore not be able to rent it out and get an income. FOS backed him on that too, so it's sometimes not just the priority bills which must be paid for the banks can take the money.

[Revenant]

This is from the FSA web site, I know it's re Off Setting but I've highlighted the important section . . .

 

Why else would my bank take money out of my account?

 

 

In certain circumstances, your bank can claim money from one account to pay off a separate debt in another account under its right to ‘set-off’. This could happen if you miss loan or credit card payments and you also have a current or savings account with the bank.

 

If a bank wants to use set-off on your account, it should:

• estimate how much money needs to be left to meet your priority debts and essential living expenses like mortgage, rent and food bills;
  
• provide a refund, in most cases, if it becomes apparent to the bank that money taken in set-off was intended for those priority debts or costs; and
  
• not use set-off on money it knows or should know is intended for certain purposes, such as where the NHS provided it for healthcare or a third party is entitled to the money.
  

You are also protected under industry guidelines, which say that banks should:

• try to contact you to discuss your options before set-off is used, and to explain when and how set-off can be used; and
  
• tell you when set-off has been used for the first time.
  

Hope it helps in some way

 

Good luck

 

R

[Desperate Daniella]

That's brilliant. I didn't know it was on their website.

[Revenant]

That's brilliant. I didn't know it was on their website.

 

 

Took some finding as I could'nt remember where I'd seen it before

 

R

[Desperate Daniella]

Well it's very useful. I just had the notes of my conversation with them

[impecunious]

LloydsTSB garnished my account twice over the course of just 3 days leaving me with £50!! I immediately phoned them and complained and the money was refunded. They also refunded the bank charges.

 

DON'T let them get away with it.

 

Good Luck!!

 

 

Impecunious!

[Desperate Daniella]

They allowed you to keep £50!!! I once told a man from barclaycard that I had only £53 in my account to last me for a fortnight and he told me that if I didn't give them an immediate debit card payment of £50, leaving me with just £3, he would send the debt collectors to my door the next day. I was sobbing down the phone and he didn't give a stuff. (That was before I joined CAG, of course. )

[cerberusalert]

would send the debt collectors to my door the next day. I was sobbing down the phone and he didn't give a stuff.

Exactly the reason not to talk to them on the 'phone. They would never dare commit to paper what they'll say on a telephone.