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I regularly come into contact with a number of people who are on benefits, which are just about enough for them and their families to live on. Many of these are caused severe hardship and distress by High Street banks making charges on their account. The banks continue to make these charges even thought they are actually unlawful under section 187 of the Social Security Administration Act 1996 and section 45 of the Tax Credits Act 2006.
Let me give you a couple of examples.
A friend of mine is a single parent with 3 teenage children. He gets £144/week in benefits, £110 of which is paid on a Monday and the rest on a Thursday, both into his account at a major High Street bank. £144 is just about enough for him to provide his family wit their basic needs provided nothing untoward happens. The other week he had to buy a new tyre for his car which he got second hand for £34. However, a payment was due that same week on the washing machine he rents, but there was now not enough in the account to cover it, so his bank charged him £38 for returning the direct debit payment. The bank then charged him a further £30 as the first charge sent his account overdrawn – they call it ‘unarranged borrowing’ – leaving his account approximately £60 overdrawn. This £60 overdraft immediately cancelled out part of the following Monday’s benefit payment, leaving only £50 which, apart from the expected expenditure, had to cover the direct debit left over from the previous week. My friend bought some food but had to borrow money from another friend to pay for electricity on his pre-payment meter until the payment due on Thursday. Repaying this loan then left him short for food for the weekend. The next week a standing order was due, but as there was now not enough money to cover it, the whole process began again. Over the last couple of years since he lost his job, we estimate that the bank has taken over £2000 from him in this way leaving him and his family short of food, often unable to pay for electricity or rent and him further and further in debt.
Another example: Another person said on Thursday of this week that her bank making these charges on her account “has caused me and my family a great deal of hardship. We are left with no means to pay the rent due to the unauthorised amount now outstanding. The incoming amounts due to be deposited into our account next week will only clear the amount outstanding leaving little if any to pay the rent, for housekeeping or utility bills such as gas.” Her husband is on invalidity benefit.
And in making these charges, the banks are breaking the law, but no one stops them!
Please sign the Downing Street petition to ask the Prime Minister to compel the banks to obey the law and stop taking benefits from people who need this money to feed their families.
You can find the petition at Petition to: compel the High Street banks to obey the law on state benefits.
Let me give you a couple of examples.
A friend of mine is a single parent with 3 teenage children. He gets £144/week in benefits, £110 of which is paid on a Monday and the rest on a Thursday, both into his account at a major High Street bank. £144 is just about enough for him to provide his family wit their basic needs provided nothing untoward happens. The other week he had to buy a new tyre for his car which he got second hand for £34. However, a payment was due that same week on the washing machine he rents, but there was now not enough in the account to cover it, so his bank charged him £38 for returning the direct debit payment. The bank then charged him a further £30 as the first charge sent his account overdrawn – they call it ‘unarranged borrowing’ – leaving his account approximately £60 overdrawn. This £60 overdraft immediately cancelled out part of the following Monday’s benefit payment, leaving only £50 which, apart from the expected expenditure, had to cover the direct debit left over from the previous week. My friend bought some food but had to borrow money from another friend to pay for electricity on his pre-payment meter until the payment due on Thursday. Repaying this loan then left him short for food for the weekend. The next week a standing order was due, but as there was now not enough money to cover it, the whole process began again. Over the last couple of years since he lost his job, we estimate that the bank has taken over £2000 from him in this way leaving him and his family short of food, often unable to pay for electricity or rent and him further and further in debt.
Another example: Another person said on Thursday of this week that her bank making these charges on her account “has caused me and my family a great deal of hardship. We are left with no means to pay the rent due to the unauthorised amount now outstanding. The incoming amounts due to be deposited into our account next week will only clear the amount outstanding leaving little if any to pay the rent, for housekeeping or utility bills such as gas.” Her husband is on invalidity benefit.
And in making these charges, the banks are breaking the law, but no one stops them!
Please sign the Downing Street petition to ask the Prime Minister to compel the banks to obey the law and stop taking benefits from people who need this money to feed their families.
You can find the petition at Petition to: compel the High Street banks to obey the law on state benefits.
