Help with argument over arrears

[MemmaJ]

Hi there, I am actually asking this on behalf of my mother.

 

Basically, she came to an arrangement with Nationwide because she was in arrears with her Credit Card. The Credit Card is attached to her bank account, and they agreed that she could pay £16 a month for a few months, and it would then be re-assessed.

 

During this time, when she was paying the £16 as arranged, she started geting letters from debt collection agency's about the arrears.

She wrote to Nationwide AND the debt collection agency about it, but no-one ever wrote back to her. But she has continued paying the agreed £!6 a month.

 

Now she has had a letter saying that unless she pays the balance in full (over £500) within 14 days, they will freeze her back account (the one that is tied to the credit card)

 

The thing is, the ONLY money that goes into that account is her income support and her housing benefit. She doesn't use it for anything else.

 

Are they actually ALLOWED to freeze your money, when it is all benefits? I have always been under the impression that they can't do something like that when the money is from benefits... Can anyone shed any light?

 

Thanks