Banks charging you whilst on Benefit - pls help!

[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.

[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