Re: First Right of Appropriation...offsetting debt against benefits RBS
replied to Natwest - bit narky and obvious but hey ho.
replied to Natwest - bit narky and obvious but hey ho.
Dear Mr Guest
Thank you for your full response to my query. I do however have a couple of further questions.
With regards to the first right of appropriation only being able to be used if the customer is in a credit situation with their account, with respect, the need for appropriation would not often arise if a customer is in that position.
The main issue that arises is the bank offsetting benefit and low income payments against overdrafts, where the overdraft is unauthorised or is subject to withdrawal of the facility, and in situations of prior notification of unauthorised overdraft fees, where the fees if taken would leave the customer unable to access their housing benefit/LHA for paying their rent.
Could you clarify your position on having no obligation to encash benefits payments where they are offsetting an excess position, and there being no general discretion to waiver bank charges in these circumstances.
Kind regards, and my thanks for your continued assistance,
Sharon
Thank you for your full response to my query. I do however have a couple of further questions.
With regards to the first right of appropriation only being able to be used if the customer is in a credit situation with their account, with respect, the need for appropriation would not often arise if a customer is in that position.
The main issue that arises is the bank offsetting benefit and low income payments against overdrafts, where the overdraft is unauthorised or is subject to withdrawal of the facility, and in situations of prior notification of unauthorised overdraft fees, where the fees if taken would leave the customer unable to access their housing benefit/LHA for paying their rent.
Could you clarify your position on having no obligation to encash benefits payments where they are offsetting an excess position, and there being no general discretion to waiver bank charges in these circumstances.
Kind regards, and my thanks for your continued assistance,
Sharon
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