Is the bank taking your Benefits ?

[tinacee1]

There have been several reported cases of Banks taking charges from accounts that have benefits paid into them by DWP and Social security.thus leaving them with little or no money.

Here is a template letter to take or send to the bank to address this.

It is important to let the bank have this BEFORE you expect to have funds paid in by DWP or the Inland revenue.

A new letter should be sent for each payment that you expect to be protected,customise as required by adding the benefit/type of payment.

 

 

 

 

RIGHT OF APPROPRIATION

 

Dear Sir/Madam,

ACCOUNT NUMBER: xxxxxxxxx

 

I am writing to inform you that I am due to have a Tax Credit payment of £xxx paid into my account on xx/xx/xx, and I wish to use my first right of appropriation for this money, for the following purposes;

Rent £xx

Utilities bills £xx

Housekeeping money £xx

I will withdraw the money on the day that it is deposited for the above use, and I would be grateful if you would ensure that any other payments out of my account do not interfere with this withdrawal.

 

Yours faithfully,

 

[signature]

 

[print name)

Is there a letter template I could use when when the bank has already taken JSA payments out of my son's account.

 

Does anyone know the procedure for taking over my sons affairs whild he is ill. I am so worried for him. He had taken a mental breakdown and just cannot cope with things and I am trying to sort everything out for him. He has completely shut down mentally (I am attending the doctor with him this afternoon) I just don't know where to turn or what to do.

[vandermerwe]

Tinacee, in an endeavour to try and be of some assistance I must assume certain things one of which is that your situation is almost a reversal of someone looking after an aged parent.

 

In such a case I would suggest an immediate drawing up of an Enduring Power of Attorney (EPA) to handle your son's affairs. Obviously this must be drawn up by a solicitor at your son's instruction.

 

There is considerable urgency to do so, as the law is changing at the end of September to prevent new EPAs from being drawn and introducing a much more lengthy (and therefore much more costly) Lasting Power of Attorney which I would think unnecessary in your case.

 

I'm not a lawyer, and this is my personal suggestion in an endeavour to help.

 

Good luck.

 

Van

[JonCris]

Hi tina

 

van is correct & I was in the process of preparing a response to your question which I will still add below even though much of it is duplicated

 

The letter you need is at the beginning of this thread & quotes the relevant legislation. Just amend it to suit

 

To handle your sons affairs as his 'Attorney' you need to have him (if still compos men tis) sign an 'Enduring Powers of Attorney' You can download the form directly from The Court of Protection's website

http://www.guardianship.gov.uk/formsdocuments/forms.htm

which you can print one off & complete without the aid of a solicitor.

 

However you must do this prior to 1st October 2007 as then it becomes necessary to complete a 'Lasting Power of Attorney' which is 32 pages long & will almost certainly require a solicitors help.

 

Unlike the present 'Enduring Power of Attorney' which doesn't need to be registered until the person granting it becomes 'non compos men tis' the Enduring one has to be registered from the outset thereby attracting court costs immediately - another stealth tax on the sick

 

Many solicitors are trying to encourage their clients to prepare Powers of Attorney now in order to beat the deadline when the cost will become prohibitive

 

If using a solicitor then the costs rises from about £60-£100 to £500+ post 31st September

[tinacee1]

Hi tina

 

van is correct & I was in the process of preparing a response to your question which I will still add below even though much of it is the same advice

 

The letter you need is at the beginning of this thread & quotes the relevant legislation. Just amend it to suit

 

To handle your sons affairs as his 'Attorney' you need to have him (if still compos men tis) sign an 'Enduring Powers of Attorney' You can download the form directly from The Court of Protection's website

http://www.guardianship.gov.uk/formsdocuments/forms.htm

which you can print one off & complete without the aid of a solicitor.

 

However you must do this prior to 1st October 2007 as then it becomes necessary to complete a 'Lasting Power of Attorney' which is 32 pages long & will almost certainly require a solicitors help.

 

Unlike the present 'Enduring Power of Attorney' which doesn't need to be registered until the person granting it becomes 'non compos men tis' the Enduring one has to be registered from the outset thereby attracting court costs immediately - another stealth tax

 

Many solicitors are trying to encourage their clients to prepare Powers of Attorney now in order to beat the deadline when the cost will become prohibitive

 

If using a solicitor then the costs rises from about £60-£100 to £500+ post 31st September

thanks for the advice Van and JonCris. I have looked for the form but I don't know which one it is on the list.

[JonCris]

Here’s the form http://www.guardianship.gov.uk/downloads/Make_An_EPA.Web.pdf which is in PDF & will need an Adobe Reader which like most you should have & if not if you go to the main site you will be given the opportunity to download it FOC

 

One small point to anyone who is a defendant & who the bank are chasing for a debt which probably includes disputed bank charges. If this be the case I should ask the court for a stay until the conclusion of the OFT case:D Sauce for the Goose & so on

[tinacee1]

Here’s the form http://www.guardianship.gov.uk/downloads/Make_An_EPA.Web.pdf which is in PDF & will need an Adobe Reader which like most you should have & if not if you go to the main site you will be given the opportunity to download it FOC

thank you JonCris I am downloading Adobe Reader now. I had uninstalled it due to PC problems last week.

[vinegarvera]

quick question.

Can I send the right of appropriation letter even though in addition to WFTC my salary has now started to be paid into the same account or is there a separate request for this scenario?

[steven4064]

You can still send it, but it does carry a little less weight in these circumstances. Advice from the Govan LAw Centre is that it is better to have salary and benefits going into seperate accounts.

[vandermerwe]

Thanks JonCris - you rounded that off well, and thanks also for the PM.

 

I didn't know about court fees, sorry.

 

Good luck tinacee - let us know how your son progresses. The site isn't just about money.

 

Van

[vandermerwe]

Hi teenacee

 

I've got a bit mixed up with your posts so I've sent you a PM from which you'll see I am genuinely concerned.

 

Best regards.

 

Van

[wobbles]

Quick Update again.

 

Recieved letter from A & L dated 24th August 2007 (it arrived today)

 

Dear Mrs Wobbles

 

Account Number; XXXXXXXXXX

 

Formal Demand for Payment

 

You have not replied to my letter of the 3rd August 2007 asking for repayment of the debt on your account.

 

Your account is currently overdrawn by £501.04 and we now have no option but to withdraw your banking facilities. Interest and administration charges will be added as shown on your next statement. This will also include any charges you have previously been told about which have not been debited to your account.

 

You must not make any further transactions against your account. If you do, it will constitute a crminal offence under the Theft Act 1968, under which we may have to take appropriate action. Your account card(s) and cheque book should be cut in half and returned to me immediately. Any standing orders or Direct Debits have now been cancelled.

 

It is imperitive you make full and immediate repayment of this account.

 

To repay the money you owe you can pay cash at any post office or Alliance & Leicester branch. Alternatively you can send a cheque drawn from another account direct to me. Please write your account number on the back of any cheques sent.

 

If immediate and full payment is not received by 30th August 2007, further steps will be taken to recover the debt and a charge of £15 will be raised on your account towards administration costs. We will notify a credit reference bureau of the default status of your account in 28 days' time. This could seriously affect your ability to obtain credit elsewhere in the future.

 

Yours sincerely

 

P SHERRY

 

Right notes now P SHERRY has never wrote to me before.

 

I wrote to them on 14th August and the letter was recieved at their office on 16th August 2007.

 

They are at long last going to close the account ( I asked then to do this in early July)

 

Should I reply to their latest letter?

[JonCris]

Yes & I would point out that it they who are guilty of committing an offence

[wobbles]

the only problem there is that all the overdraft is their charges, The account last time I used it had a balance of £3 something credit, so are they guilty of stealing thier own money or is it some other offence, Ive already stated the Tax Credits act and social security act.

[JonCris]

wobbles are you saying the bank have never taken your benefit payments to cover their penalty charges. If not your question doesn't make sense

[wobbles]

the only monies ever paid into the account where childrens tax credits and working tax credits and child benefit, I cancelled all direct debits from the account on 29th may and left the account with a balnace of £3 something.

 

I rang the tax credits and child benefit the same day requesting that all monies be paid into my old nationwide account.

 

The alliance & Leicester then decided that they would pile on charges for 3 weeks while i was out of the country for non payment of direct debits that I had already cancelled. they have piled on the charges even more since and the account now has an overdrawn balance of -£501. of which £504 of that is purely charges for direct debits that where cancelled.

 

So thats what I mean about them stealing from themselves. Im confusing myself now.

I dont want any money at all off them I just want the account closed and the charges withdrawn

[steven4064]

So thats what I mean about them stealing from themselves. Im confusing myself now.

It's your account and by applying charges they have transferred money from your account. Therefore they have taken money from you not from themselves - I know it's confusing, but this is the fact of the matter. It is easier to understand when you consider that, to close the account, they have to pay in money to bring the balance to zero. They have taken your money.

[steven4064]

I have just posted my PoC here for a claim against Halifax for charges against benefits (on behalf of a friend). I would be grateful for any comments on the wording.

[Louisamc1]

Lloyds TSB took £170 in bank charges on 3rd September, the same day as my working family tax credit was paid! I have just rung the bank and told them what they have done and that it was illegal and they offered straight away for me to go and collect it back from over the counter! She didn't even sound shocked and was very pleasant about it all. I would try ringing your bank in the first instance as it sounds like they are well aware of what they are doing as they don't even argue with you. The whole process took 30 mins from the phonecall to collecting my money.

 

I feel so empowered!

 

Good luck

[steven4064]

Well done Louisa.

[doogle]

My daughter went into the bank today and Lloyds TSB gave the the money back immediately. They then stated that her account would be closed within 30 days.

[JonCris]

doogle in that case report them asap to the Banking Ombudsman & should he find in her favour, which is most likely, the bank will be admonished & ordered to pay compensation.

[doogle]

Thanks JonCris for that advice but they offered her the address for them and basically encouraged her to write stating that they can take charges from benefits despite the Social Security Act. The money was from the DWP

[archer_66]

ok i complained to natwest about the illegal taking of my tax credits and asked for them to be refunded. i today received a letter off them saying this

having looked into your concern,I can confirm that the illegal charges you refer to are not applicable to bank fees incurred on your account as a result of your account activity.The cahrges which are referred to are when a form of legal charge is attached to your Tax Credits.....

anyone ? i really need this money as my rent is behind and im threatened with eviction pretty soon.

now i thought that a legal charge attached to the benefit was allowed as it would have to go through courts. someone??

[steven4064]

Strictly they are corrrect - the 'charges' referred to in the SSAA1992 and TCA2002 mean things like attachment of earnings. However, these acts also refer to assigments in the same way as charges. I believe that the bank agreements covering charges constitute an assignment and an agreement to assign contrary to the above acts - I am discussing this with some of the mods/site helpers ATM to confirm. I also spoke to my MP yesterday and he was sympathetic to this view.

 

The way it may work is as follows:

 

1) you don't have enough money in your account to pay a DD

2) the bank levies a charge on your account for referring the DD

3) that takes you into an unauthorised overdraft - ie puts you in debt to the bank

4) when you next payment comes in from DWP/HMR&C the bank takes the first cut to pay off your debt to themselves

5) this is an assignment contrary to the SSAA1992/TCA2002

[archer_66]

thanks steven for your input ,ill be writing back to them.