Is the bank taking your Benefits ?

[TideTurner]

My Mother telephoned this morning to say my Sister was distraught. When I arrived, and found that the problem was the bank have been taking charges of £33.00 from her account. This was as a result of her going overdrawn by £0.66. She is a single parent, and this represents 40% of her weekly income!!

 

After the Post Offices closed down, she was given no option but to open an account with the bank to get her benefits paid in.

 

I stormed to the bank, livid, and following some commotion, I was shuffled into the Managers office. He informed me that they could not guarantee the account would not go overdrawn, as I requested that it is Debit only. She has no direct debits, and I can only assume that the £0.66 o/d was caused by a £2.00 monthly service charge applied.

 

He informed me that he would investigate and contact her directly, and if she was not a persistent offender, any charges made would be reimbursed.

 

She has recently been sent a letter from them stating a £6 a day charge for unauthorised overdrafts, and I believe this is a clever way of informing her of an alteration to the Terms and Conditions of the original account.

 

It's not often I lose my cool, but I am hopping mad about this.

 

How many people are doing without basic necessities because they have been forced to open a bank account to receive their benefits?

 

Also, why has there been no intervention by the Government to prevent those struggling (my Sister is unable to work due to medical reasons) from becoming the victim of these profit hungry leeches?

 

How can anybody take the food off the table of my nephew after deliberately placing my Sister in an overdraft position?

 

I cannot comprehend the morality behind this.

 

Sorry to rant but I am livid, will decide what to do when I calm down (NEVER ACT IN ANGER).

 

Absolutely livid

 

Tide

[Mistermind]

Completely with you on this one.

 

I take it this is Lloyds the barking mad bank. Where Barclays recently slashed their penalty charge to a one-off £8, Lloyds raised their penalty charges. £2 overdrawn, £200 penalties in short order is the norm with them. I would more than support CAG joint action to single out Lloyds without waiting for the Test Case to trundle to an eventual verdict -- in 3 years time?

 

Justice delayed is justice denied.

 

New Law - Breach of the Banking Code can now be prosecuted by the OFT or Trading Standards

[JonCris]

Tide if she's willing get the media involved now......£33 for going over by 66p & it turns out it's the banks charges that have caused it not feckless spending. Christ the press will love this

 

She MUST also write to her MP asap

Edited June 7, 2008 by JonCris

[steven4064]

JonChris

 

Couldn't agree more. Especially as the 66p was caused by the bank's own service charges - why didn't they exercise their right to not charge it and not provide the service? Oh, I forgot, they make a lot more money this way

[The GodMother]

Tide.

 

I am also with LTSB for my banking and they have recently taken money out of my benefits for BCs.

 

Now i applied for a Crisis loan stating the reason why and was turned down due the the fact that LTSB have a agreement with ALL benefits offices not to take charges out of benefit money according to the benefits office.

 

the bank is currently investigating if this is true as the person my OH spoke to does not know anything about it but the supervisor remembers seeing a fax about 6 mths ago regarding this.

 

I am going to PM u a phone number the DSS gave us to contact the bank with regarding this it has so far worked with us as the next lot of chrges have been waived and we may be getting the last few lots back when they move there ass about it.

Edited June 10, 2008 by The GodMother
spelling.

[inchigh]

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)

hi does that apply to state pension as well, the halifax want to take £70 of my £110 pension on the 14th for refused direct debits

[Mistermind]

State Pension is a benefit paid by the Department of Work and Pensions, so comes under what Martin described.

[TideTurner]

Many thanks Godmother, I got your PM and will phone them on Monday. At the very least, her MP will receive a letter outlining exactly what they have done, BBC Watchdog also.

[Vital Spark]

Hi Godmother. I can't remember how to PM someone so can I ask you to pm me with the same number for Lloyds? This is most interestign as I find Lloyds are not just happy but eager to whip charges from my benefits.

[steven4064]

Hi VS

 

For information - to send someone a PM, click on their name or avatar and it will take you to their profile. There is a tab labelled "Contact Info" which, if you click it, will offer you the option to send a PM to that person.

[JonCris]

Tide.

 

I am also with LTSB for my banking and they have recently taken money out of my benefits for BCs.

 

Now i applied for a risis loan stating the reason why and was turned down due the the fact that LTSB have a agreement with ALL benefits offices not to take charges out of benefir money according to the benefits office.

 

the bank is currently investigating if this is true as the person my OH spoke to does not know anything about it but the supervisor remembers seeing a fax about 6 mths ago regarding this.

 

I am going to PM u a phone number the DSS gave us to contact the bank with regarding this it has s far worked with us as the next lot of chrges have been waived and we may be getting the last few lots back when they move there ass about it.

 

 

GF if this is correct please post the details as this will be of immense help to some I'm assisting

[steven4064]

It would be of immense help to loads of people on this site

[Dipply75]

My brother has been hit with charges as TV licencing tried to take a direct debit of £70 for his quarterly payment! Funds obviously not in so charges taken from his JSA. I tried arguing with customer services - useless.

 

A number would be no end of use but even just the appropriate letter to hit the branch with would start things off as I know this has happened before on his account.

 

(Have won 2 battles there already for folk - manager hates me. Which upsets me, it really does....hehe)

[TideTurner]

Courtesy of TGM, telephone number to address charges with LTSB

 

0800 3898766

 

I'll be phoning this first thing

[Dipply75]

Great big heartfelt thanks to you Godmother, and to you Tide Turner. I know its not hundreds, but its a lot when you're on benefits.

 

How busy will their Monday morning be

[sweetnsexyenglish]

How would I find out if Nationwide also made an agreement with the benefits department so that I could contact them and make them aware of this? As finding out info from the benefits department all depends on who is in fact in reciept of that piece of information.

[Vital Spark]

Enormous thanks to all concerned. Big smile through tears.

 

I wonder, though, if this is why a charge I was advised would be coming out of my account on the 1st this or last month (in my case, dyslexia forbids accurate remembering as some of the longer standing members may remember), was never taken. I've been keeping the money in my account just in case they "surprise me"

 

I have another matter upon which I would like information and guidance but I can't find the pertinent letter. I'm wondering again.....could the money placed back into my account have come from this ruling to NOT take charges.

 

The sum (£125,) wouldn't have, in any way, covered all the charges they've taken in the apst but perhaps it was what they deemed fit. I was understanding it to be something form a cheque which had been held back from 2004. I'll find letter and give more detailed info on this then ask what you think.

 

I was thinking that, had I been corrrect in my initial understanding that this should have been accompanied by interest on the amount going back to 2004, from which time it had been held by Lloyds.

 

Would Lloyds be likely to be repaying charges deciding that they would go back just as far as 2004?

[Vital Spark]

Can sone reme

Edited June 10, 2008 by Vital Spark
Spelling

[Vital Spark]

Thanks Steven for the information on sending a pm. Had completely forgotten how as I haven't used it for a while. x

[steven4064]

2004 makes no sense. 2002 would be 6 years and you could understand that from the Limitations Act. And I don't think Lloyds are paying back charges without being severly hassled to do it.

[The GodMother]

Steven and JonCris.

 

I was actually cagbotted once for giving a phone number on open forums so that is why i did not put it on and chose to send it via PM.

 

This to was a useful number regarding a different company from memory i think it was studio cards non 0870/0871 number.

 

If this rule has changed then i did not know about it but i will post any relevant phone numbers in future.

 

Please could everyone be ware tho this number may just be for my local area and not all over. Tho if it is not you may be able to get the phone number from yur local DSS office or from the telephone operator themselves.

 

Sweet. All i did was apply for a crisis loan from the dss with all the relivant info. like how much they had taken out of the bank and when.

 

I was refused but that is when i found the posted info out.

[steven4064]

Hi GM

 

Quite a few of the bank conctact information threads have phone numbers (eg http://www.consumeractiongroup.co.uk/forum/natwest-bank/74934-natwest-contact-information.html#post652087) - I think it depends on which phone number is on the open thread (eg NatWest CEO's home number might be removed, office number not IMHO). Certainly I tink that any office number for a financial or other institution is fine.

 

BTW

This is because my baby, which they think is a girl, is due within the first 10 days of June

today is the 10th, what news?

[TideTurner]

This site may avoid you paying 0870 charges - SAYNOTO0870.COM - Non-Geographical Alternative Telephone Numbers

[sweetnsexyenglish]

 

Please could everyone be ware tho this number may just be for my local area and not all over. Tho if it is not you may be able to get the phone number from yur local DSS office or from the telephone operator themselves.

 

Sweet. All i did was apply for a crisis loan from the dss with all the relivant info. like how much they had taken out of the bank and when.

 

I was refused but that is when i found the posted info out.

 

Well I gave my local a call and the employee didn't know anything about benefits and banks but she did say she would pass me on to someone who should know, so I am waiting for a call back though I will not hold my breath:D dont wanna be turning blue now do I as it could be fatal:D

[The GodMother]

My advise to you sweet is to apply for a crisi loan and state the reason as

 

'Bank taking benefits money for charges against The Social Security Administration Act of 1992 section 187 Certain benefit to be inalienable says:-

187 Certain benefit to be inalienable

(1) 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 bankruptcy of a beneficiary, such benefit shall not pass to any trustee or other person acting on behalf of his creditors.

 

They May ask u what bank it is but it does not matter.

 

The decision maker will then make a decision and let u know. They may then tell u they have the agreement.

 

Steven.

 

The only news is she seems to be staying put but the other half wants to know if a sink plunger and vax will help???

 

Tide not always are the ppl listed in the website and not always are the numbers correct so i dont rely on that.

 

All tho that has given me the correct telephone numbers on some things.