Is the bank taking your Benefits ?

[louiboy]

Here's a letter from the Govan Law Centre website. I just altered it and sent to my Bank for repayment of 2 arrestment fees from 2003 and 2004. The letter is based on Scots Law. However most of it relates to the social securities act. perhaps somebody with a bit more knowledge of English Law can change the Scottish Statute bits to English Statute. I changed the ending slightly to demand my arrestment bank charges, interest and £50 for compensation and expenses.

 

The caselaw - Woods v Royal Bank of Scotland

 

In the case of Woods v Royal Bank of Scotland 1913 SLT 1 Reports 499, a worker got compensation under the Workmen's Compensation Act 1906 (an early form of benefit) and paid it into a bank account. This case held that the benefit itself could not be assigned to another person. If benefit was plainly identified in a bank account, it should also have statutory protection from arrestment. The money did not change character because it was paid into an account.

 

 

Dear Sir/Madam

 

Unlawful bank charges following an arrestment of welfare benefits - request for refund for [YOUR NAME, SORT CODE, and ACCOUNT NUMBER]

 

I write with respect to the application of the following charges to my account: [iNSERT DETAILS of charges applied].

 

I am of the view that your charges are irrecoverable in law. As you know the monies in my account derive from [tax credits, paid to my client by HM Inland Revenue, and/or child benefit paid by DWP, and/or child maintenance from the CSA, and/or social security benefits - income support, Jobseeker's Allowance, Incapacity Benefit, Disability Living Allowance, Attendance Allowance etc. - paid by DWP]. This is confirmed from my bank statements.

 

Both the Scottish Law Commission and Scottish Executive concede that social security benefits are exempt from arrestment in terms of section 187 of the Social Security Administration Act 1992 (see Enforcement of Civil Obligations in Scotland, Scottish Executive report, at paragraph 5.245). Section 45 of the Tax Credits Act 2002 is an identical provision to the said section 187 of the 1992 Act.

 

It is therefore trite law that tax credits and other such maintenance or social security benefits are exempt from arrestment. The case of Woods v Royal Bank of Scotland 1913 SLT 1 Reports 499 is authority for the proposition that where exempt monies are paid into a bank account, those monies remain exempt from arrestment insofar as such monies can be clearly identified within an account.

 

Accordingly, you have erred in law in arresting exempt monies in my account. You cannot impose administrative or penalty charges for your legal error. I would therefore ask you to refund said charges of £xx my account within the next 7 days, failing which I will commence an action for payment and wrongful diligence without any further notice.

 

Yours faithfully

 

 

 

[sIGNATURE]

 

[louiboy]

"benefits are exempt from arrestment"

It's the same ideas as a wages arrestment. If the money in your bank account comprises of Social Security Benefit, Housing Benefit, Child Maintenance, Incapacity Benefit, Jobseekers etc. These types of funds are exempt for arrestment. If an account with benefits is arrested you can visit the court explain the money in the account is exempt and have the arrestment lifted. It's a good idea not to have any other sort of funds in the account. Thus making it easy to identify the benefits.

 

In my case there was a court order granted allowing wages arrestment. When they attempted to seize the account there was next to nothing there and the bank refused the arrestment and handed out a charge for admin. The charges were clearly illegal under s.187 of the Social Security Administration Act 1992 . I only discovered this last week when I started to examine my bank charges.

 

On a plus side the Sheriff's Officers/Ballifs who attempted to seize my account folded under questioning and refunded the charges at the time and added some money for expenses. I believe they were in trouble because at the time they were aware I was on benefits. I didn't push the issue as I had received my money back.

 

I don't know where you stand on charges from the normal day to day running of a bank account. You could try the Bank Templates Library about half way down the page: Right of Appropriation - Stop the bank from taking your money