Banks charging you whilst on Benefit - pls help!

[Charlee_0]

Hi I have read thats banks shouldnt take charges from you when your only income is benefits - is this right?? Our bank are taking £100 out everymonth and its killing us! Please Help!!

[HydraUK]

I don't know about the 'should' or 'should not' , banks tend to operate on the 'can' and 'will' side of things...

 

However you a perfectly entitled to claim all those charges back off them, thats what this site is all about.

 

Have a good read and then start a thread off in the forum that's appropriate to your bank. There are lot's of extremely motivated, knowledgeable and helpful folks on here that will see you right.

[LondonPam]

I think what you might be referring to is this...

 

 

http://www.consumeractiongroup.co.uk/forum/bank-templates-library/42170-right-appropriation-stop-bank.html

 

It's in the templates library and I belive you change the bits in red.

 

Good luck.

[beau]

This situation is very much dependent on circumstances, i.e if these pymnts are paying off a credit card debt you are able to write to bank and request lower monthly pymnts however they will and can refuse if you say for example 'i can only afford 10.00 per month' + the bank then notice monthly pymnts of 40.00 going to a sky subscription, if you see where im coming from the bank will see your credit card debt as more important than sky, however, if the are pymnts relating to your account they should be justified i.e no more than admin costs, if you are having difficulties what they should be prepared to do is either freeze or lessen these charges, again write to them explaining your personal circumstances, also, pls dont take this wrong way but be nice and suck up as alot of the time a bank is less helpful if they receive a stinking/letter fone call, we consumers do have a tendency to forget that we are communicating with another person and we bank people dont like to help customers who aren't nice to us.

 

Hope this helps.

[JonCris]

Putting aside the lawfulness of their charges the banks have NO entitlement whatsoever to deduct their penalty charges from an account no matter what else is being deducted. In other words even if their penalty charges where lawful they STILL shouldn't deduct them no matter what else your paying for through your account. To do so is a breach of the Social Security Act 2002.

 

If this has happened you can ask the DWP to recall the payments that have been taken. Should you ask the DWP to they may even write to your bankers pointing out the illegality of their actions.

[MARTIN3030]

Yes the RAP letter should be used in your case,as JC says DWP will certainly confirm the legalities of this.

Letting the bank have a RAP letter and also telling them you will be seeking clarification of the SS act will no doubt show a shift.

The sooner you get it in to them the sooner you will start to keep your money.

[breadline]

Hi Charlee

Sorry to see you are having such an awfull time, they are being awkward and know full well this money is not ear marked for them.

With the advice you have recieved you will get through this, recently i had a similar problem. The immidate thing to do is get those benefits moved out of there and paid into some where else.

If you have explained the situation to the DSS they may even manage the change over of your bank details quicker as they know your situation.

 

This is an issue which has to come out in the open as im sure the banks are having alot back in benefits.

 

Hope you get a break in the clouds soon.

BL:)

[JonCris]

Yes as breadline states the quickest way to protect you money is to arrange ASAP to have it paid into another account. You can have it paid into another person account such as a spouse or partner if you wish but be careful. Just because your on benefits doesn't mean they can't issue proceeding against you & if you stop making ANY payments into your account they could demand you pay any overdraft. If at all possible & you have access to another source of funds try & continue to pay something into the account.

 

In the meantime do your SAR then your calculations (including compound interest) & you never know you may find they owe YOU money.

 

Treat you benefit payments as you would any other income when it comes to recovering your charges

[breadline]

Hi Charlee

It would help gain advice if we knew which bank as members know their tricks and what they will accept.

 

I know Lloyd's will insist on 5% payment on each and any loans/overdrafts, if you are unemployed. Even though you can pay as little as £1 this 5% is more than they may get in court so they accept it. Court may well turn round and advice £1.

 

To gain reduced payments you have to gain a pay plan reference number this may be the same with most banks, however they will give you the run around for a few months before telling you this and they get a few months more interest slapped on your debits. As once they receive the pay plan number the interests are 0%.

 

As i say this is from my own experience with Lloyd's I'm in debit and on benefits, Get to pay plan asap In case it is an aid for you.

 

they are lovely people and its all free

Free Debt Management company | Pay plan

 

BL:)

PS dont mention reclaiming your charges, they see it as aggravating the beast, dont go down to good:rolleyes: