where does he stand?

[monkeysputum]

My brother in law had a student account, which HBoS saw fit to furnish with a £1,000 overdraft and credit card. He has since left college and is claiming benefits, but the bank strip his account of whatever funds are placed into the account. I was wondering about the legality of this practice and as such, where he stands in regard to claiing any of this money back

[Switch]

Could your brother in law not open another account with a different bank, and have his benefits paid into that.

 

That way your brother in law would have monies to live on and he could also then pay something into the HBos account to reduce the outstanding balance without leaving himself financially short, but keeping HBos happy at the same time.

 

Hope this helps.

 

Switch

[monkeysputum]

he has opened an account with RBS, but as yet hasn't had the opportunity to visit the D.S.S to arrange the change of account details as he suffers from back pains and can't always get out and about, the question was though, where does he stand on getting at least a portion of the monies back

[Don Quioxte]

the question was though, where does he stand on getting at least a portion of the monies back

 

you were not overly explicit in your description of the situation.. but I assume that when you say "the bank strips his account of whatever funds are placed into the account" that HBOs have removed the overdraft facility?

 

I presume that this may be related tothe fact that he is nolonger studying or does not fulfil the bank's criteria with regards a student overdraft facility any longer?

 

Either way, legally it is within the bank's terms and conditions to withdraw overdrafts or other lending facilities upon demand. I am confident that they will have notified him of any change to his account status in line with their TnC's.

 

The monies you refer to are his indeed, but if he has not adjusted his banking arrangements in light of the fact that he no longer has an overdraft facility with HBOS then I'm afraid the onus of responsibility lies with him. Not HBOS. The bank will naturally reatin any funds that are paid into the account until it is back within the agreed limit.

 

In practical terms, your son needs to either review the situation with HBOS and come to an arrangement whereby they pu a temporary limit onto the account and reduce it in a payment plan. Failing this he must get his DSS paid into another account if he wishes to access it.

 

Bear in mind,that if he does the latter he will still have to communicate with HBOS and negotiate repayment terms on the debt outstanding. But obviously we want him, first and foremost to be able to access money? In direct answer to your question however, I cannot see any illegality in the practice of HBOs at this time. You can take steps however to make the situation more manageable.

[mutzi]

If your in Scotland... http://www.govanlc.com/benefits_&_bankarrestment.htm

 

Not sure of the exact implications of this, maybe someone else can explain.

[Bovvered]

...and if the bank charged him any penalties he can ask for those back, but probably best he moves to new bank first so they can't take his benefits....

[monkeysputum]

This topic was closed on 10 March 2019.

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