Is the bank taking your Benefits ?

[TideTurner]

***APPEAL***

 

Does anybody know of any legislation passed by the Government which forces the Banks to give people on benefits a bank account in order to receive benefits regardless of their financial standing?

 

A family member has had her account closed after two letters for a DD for a magazine!

 

I am thinking that the Banks are using this as an excuse not to deal with people on benefits.

 

Any help appreciated.

 

Tide

[JonCris]

There is no legislation. It was/is a 'gentlemans' agreement.

 

Report the bank to your MP & the BO

[pudsters14]

My mum has had a similar problem, her and my Dad used to have a joint account with LTSB (or the toytown bank as we call them)...they were treated awfully and moved accounts, because my Mum is disabled and housebound my Dad opened the account with A&L in hos sole name as it was quicker at the time... my mum tried to add her name on recently as she had been sent a chq and they wouldn't let my Dad pay it in,...they have said that she cannot be named on the account and they will not do anything to help her as she does not 'bring' anything to the account....despite the fact her DLA is paid into the said account.... I might add that my Mum and Dad have also had a mortgage with A&L in joint names for 19 years.... they did say that if my Dad dies then that's okay and she can be added... she's absolutely fuming ... they made out as though she had no right to my Dad's wages.... that's surely none of their business... what about when she was a housewife and bringing me up?!? Does that mean that all wives who don't work... therefore don't have the right to spend their husband's wages?!? no... I think it's discrimination against disabled ppl. I wouldn't mind either but she has two credit cards in her name that she has run perfectly, neva missed a payment... so they cannot say she has no credit score (although they have tried to say that too)... and although that opens up a whole other can of worms with regards to CCard companies issuing cards to people who clearly cannot afford them on their own (she is the principal card holder)... I still think that the bank are being completely out of order with the bank account... Any views? I have suggested we write to them and complain?!?

[wakenthedead]

Hi guys - sorry to jump in again - I just wanted to let you know that after all the advice from this thread and elsewhere on CAG I have finally got my benefits back, all £1240 - I received a letter today offering me the full amount of charges back. My own personal thread on the appropriate forum is http://www.consumeractiongroup.co.uk/forum/halifax-bank-bank-scotland/61208-wakenthedead-bos-1-a.html- so you can have a nosey.

 

Anyone thinking of going after their benefit - it can be traumatic but it's money that is rightfully yours, so make sure you have a support team, my husband was amazing and the people on here have been fabulous.

 

Thanks guys

 

Lisa

x

[maybelline]

Banking Benefits

this has somebackground info on the encouragement to banks re basic accounts Financial Inclusion Taskforce

 

this may have been a useless exercise but wonder if a letter to anyone here will get noticed

[maybelline]

HBOS: Financial Inclusion

 

how about this from HBOS!

[ihateabbey]

See my thread over what abbey did today

 

http://www.consumeractiongroup.co.uk/forum/abbey-bank/75135-abbey-you-have-shocked.html

[Perseus]

My mum has had a similar problem, her and my Dad used to have a joint account with LTSB (or the toytown bank as we call them)...they were treated awfully and moved accounts, because my Mum is disabled and housebound my Dad opened the account with A&L in hos sole name as it was quicker at the time... my mum tried to add her name on recently as she had been sent a chq and they wouldn't let my Dad pay it in,...they have said that she cannot be named on the account and they will not do anything to help her as she does not 'bring' anything to the account....despite the fact her DLA is paid into the said account.... I might add that my Mum and Dad have also had a mortgage with A&L in joint names for 19 years.... they did say that if my Dad dies then that's okay and she can be added... she's absolutely fuming ... they made out as though she had no right to my Dad's wages.... that's surely none of their business... what about when she was a housewife and bringing me up?!? Does that mean that all wives who don't work... therefore don't have the right to spend their husband's wages?!? no... I think it's discrimination against disabled ppl. I wouldn't mind either but she has two credit cards in her name that she has run perfectly, neva missed a payment... so they cannot say she has no credit score (although they have tried to say that too)... and although that opens up a whole other can of worms with regards to CCard companies issuing cards to people who clearly cannot afford them on their own (she is the principal card holder)... I still think that the bank are being completely out of order with the bank account... Any views? I have suggested we write to them and complain?!?

 

Hi pudsters

Thats shocking! And yes on face value it would appear to be discriminatory - but I'm sure they would argue that!.

You state that your mums DLA is paid into that account? In her own name? If that's the case, then surely that could be used a a precedent to pay the cheque in? If there is a local bank, it would be worth your Dad calling in with a letter of authority from your mum to pay the chequ in, and state in that letter, dates that her payments have been paid into your Dads account. If they still refuse, and further refuse to add a second account name - ask them for a statement as to why she cannot be added in lieu of the fact that they are already accepting payments for her into that account. Failing that - is it possible (just to get over that hurdle) to get the person raising that cheque, to re-send another in your fathers name.

Failing that - I really don't know what to suggest. If her application to be added to the account is refused on lack of income to the account - maybe a reminder of the DLA premium paid in would sway their mind?

 

Good luck.

Perseus

[purejayne]

Hi everyone -

 

what happens if the Bank takes your money anyway even if you have served them with a Right of Appropriation letter. Abbey have now indicated they are taking a further £50.00 of charges out of my account on 5 April and funnily enough its again on the same day my Child Tax Credit goes into my account. What action can I take if this happens?

[Tash188]

Hi everyone,

 

Can you please tell me if this applies to Carers allowance aswell? My partner receives this for caring for me but had nearly £100 of it taken in charges last month. I also receive DLA, IS, CB and Tax credits into my account. All of which have been taken at some time or another for charges which I can't afford as I also have a young child.

 

Will be doing the letter on the 1st page. Just wanted to know if Carers allowance counted aswell?

 

Thanks alot

 

Tash x

[midnight1]

As soon as our bank took charges from us I changed all the benefits to another bank till it was sorted out. Drastic but means they cant touch any more.

[TideTurner]

Purejayne,

 

You should inform the DWP that the methods they are using to pay your benefits are insecure. This may cause a problem with your account, have you got another account your benefits could be paid into? If not, you need to set one up so all runs smoothly.

 

I would then phone the Abbey and ask them if they had received my Right of Appropriation letter. If they say yes, ask them why they are ignoring it. Get the name of the person you speak to, and make written notes of the date, time and telephone number you called.

 

Where you have had charges before, have you taken any action yet?

 

Tide

[midnight1]

Also when sending correspondance to the bank send it recorded delivery or when delivering it by hand get the name date/time and signature of the person who has took it. When I did that I was led to a side interview room and it was sorted within minutes:-D

[standingupformyself]

I posted this reply on to my Barclaycard thread, but as yet have not had a reply. Is there anyone out here on this thread that could give me some advice.

 

Something very similar happened to me. Last September I was overpaid two payments by Family Tax Credits, one payment for £1500 and the other for £3500. The £3500 was returned to Family Tax Credit the same day, although it arrived in my account FTC managed to recall it. The other amount didn't. However Barclaycard managed to get £560 out of my account the same day. I am presuming my account was flagged (it is a Barclays account) It left my in debt with Family Tax Credit as the payment was an overpayment and has to be paid back...... they are wonderful Barclaycard, dont' we love them.

 

Any advice appreciated. Thank you

[purejayne]

Tide - thanks for your reply.

 

I had £80.00 taken out of my account last month - I sent in a letter of complaint to them but they refused to refund the charges on the basis that it was not an "emergency situation". I asked what was an emergency situation - my son needs to be fed - surely that is an emergency situation. Someone had to have died before they would reconsider refunding they said. They are still in the process of investigating my complaint or so they say.

 

I did not send in a Right of Appropriation in time for the other charges not to be taken out but I intend to this time. I'm sick and tired of having my benefits taken off me.

 

I have been in touch with the Ombudsman who has given me a case number and has said to let them know if the Abbey do not refund me my benefit money but they state that Abbey has to have the chance to investigate first.

 

I intend to take members advice on here and open a Post Office account and in the meantime I am in the process of drafting the first letter requesting all my bank charges back over the last six years.

 

What if they ignore my right of appropriation though? I can't afford to have another lot of benefits taken yet again. I feel as if I'm talking to a load of muppets when I phone - they just do not listen. I'm so angry I could scream.

[Fox Mulder]

It applies to all benefits. In the case of Abbey taking those funds on the day your Child Benefit goes in, if you've written a letter of appropriation that names that date and designates those funds, they are in the wrong.

 

Tell them so by phone or going into a branch if need be. If they insist, tell them they are wilfully breaking the law. Demand a letter telling you why they are ignoring your appropriation letter, why they believe they can break the law with impunity. As a customer, you deserve a response in writing.

[Fox Mulder]

And get a parachute account. And make it clear that once they put in writing that they are ignoring your appropriation letter, and choosing to break the law, that letter will then be brought forward as evidence in court action and you can then pursue the bank as unworthy of... now what is it... something like being a banking and credit institution. There's stuff elsewhere on the site about this... x

[Perseus]

 

What if they ignore my right of appropriation though? I can't afford to have another lot of benefits taken yet again. I feel as if I'm talking to a load of muppets when I phone - they just do not listen. I'm so angry I could scream.

 

 

Hi Purejane

 

In the meantime, and before any more benefits are paid into your account, contact which ever dept pays your money in - advise them that despite warning your bank, they are seemingly flouting the social security act and appropriating your benefits to pay unlawful charges - and request that the dept pays you by giro whilst you set up a post office benefit account (it can take upto 2 weeks to set up!). If they umm and err - tell them that you are being left with no means to support your family, and you are now in desperation. They should agree, and maybe even offer assistance in clawing back your benefits from them (or at least contact the bank for you!).

It's certainly worth a try, and if you do have to argue further, it's recorded with FTC/Income support/DLA/DWP whichever.

 

All the best

 

Perseus

[maybelline]

how about opening a basic account with another bank online, I managed to do this although could not get a current account, did it all online, details docs came in post. if your benefits are still being taken by the bank it is vital to stop the money going to that account. re overpayments by tax credits, if the bank has taken this, keep the statement that shows you did not take that money out but that the bank has 'appropriated' that money, I would be tempted to let the tax credit people fight for it from them (however I am not a legal bod, just my opinion) good luck

[stitch05]

I was in a similar position, and despite sending a letter of appropriation weeks in advance, the charges still remained

I have tried phoning... writing... emailing... but the most successful attempt to get my money back was by going into a branch, with the letter of appropriation, the money was back in my account that afternoon!

 

I agree with the posts above, the best way to protect your benefits is to open another account.....I went into my local llyods and it took less than one hour to open their basic account. I left with the new account details and cashcard in the post two days later. The benefits were transferred very quickly too.

So this new account, not overdrawn, and definitely no direct debts.

 

good luck!

[Perseus]

Tide - thanks for your reply.

 

What if they ignore my right of appropriation though? I can't afford to have another lot of benefits taken yet again. I feel as if I'm talking to a load of muppets when I phone - they just do not listen. I'm so angry I could scream.

 

I understand that you're frustrated with this situation - I would strongly reccommend contacting the agency that pay your benefits - and tell them what has happened so far - ask them to provide you with a giro for your next payments until your post office account is sorted.

It's the quickest way I can think of to avoid losing your money whilst you're waiting for the Post Office account.

 

Good luck, let us know how you get on ok?

 

P

[purejayne]

Thank you everyone for your kind replies and help.

 

I've rang the Child Benefit people and they are paying my Child Benefit into my sisters account until I can get a post office account set up. The Tax Credit people are sending me an "invitation to open a giro account" straight away. Both organisations were disgusted when I told them what had happened and very helpful.

 

I have sent a letter of appropriation to Abbey Recorded Delivery and also handed in a copy to my branch.

 

Watch this space. I'll let you know what happens.:-?

[TideTurner]

Purejayne,

 

You need to stand strong and point out the facts. Yes, these people can cause inconvenience by shutting down your account. You can then claim that your account was closed in a vexatious manner (a recent ruling by the DTI).

 

Stand by the law, and quote S.122 Contribubions and Benefits Act that any penalties or charges are unlawful.

 

You'll get help here.

 

My main point is you need to make those paying benefits that the method they are using to ensure peoples benefits reach them is inherently flawed, therefore they are failing ensure people have the money they need to live on.

 

IN TWO CHARGES THEY CAN WIPE OUT A WEEK'S MONEY WHICH IN TURN HAS FURTHER REPERCUSSIONS.

 

THOSE TWO CHARGES ARE A BLIP ON THEIR SCREEN WITH RESPECT TO PROFIT AND WON'T AFFECT THEM WHETHER THEY GET THEM OR NOT.

 

How dare they apply such charges to somebody on benefits,

 

Let's got at them properly, and support each other.

 

I'll reply to all PM's made on this thread. Purejayne - keep reading, but if you need any help let me know. B"£$££$"4's

 

Tide

[maybelline]

thanks for letting us know purejayne, its good that the agencies were so helpful, good luck:)

[1234debt]

Hi, I'm already on the second step of reclaiming charges from my bank, they have two days left to reply to my first letter and I shall be sending out the second. My question is, I'm a single parent receiving income support and child benefit, I'm overdrawn on my account because the bank keep taking charges when there is no money in my account so it spirals into me having charges monthly (all because I took money out of the account the day it went in when I'd already phoned to check there was money in the account and they said yes and that I could take it out). I rang up customer services to talk about them unlawfully taking charges from benefits(that is all I have paid into the account because that is all I have and it's left me with no money at all so I opened up a PO account and had my benefits paid into there) and quoted the act(as in the first post) the lady got quite nasty and insisted I was wrong and that if there were charges due on the account they could take it from whatever money was in the account and basicly it was my fault for being overdrawn when I have no overdraft agreement(even though I never go over by more than 10 pounds and they refuse to give me a buffer) and that I need to pay the money or my account will be closed. She got quite nasty with me and I didn't know what else to say as she just kept saying "you're wrong". I took the address of a person to write to concerning the matter so I was just wondering as I'm not using the account(but I'd like to be able to and don't want it to be closed) I don't need to write to them weekly and ask them not to take money out what should I say in my letter? All help will be gratefully receivied! Thanks in advance!