I Don't Understand This. Anyone Help?

[littlesally]

I have been helping as much as I can about benefits then I saw this which puzzled me

Originally Posted by maybelline
I thought benefits were 'inalienable' or something under the Social Security Act, even DWP are not allowed to take payment for maintenance for example at more than the legally laid down amount (usally a couple of pounds)? if the banks are going to decide that being on benefit alone does not prove hardship but what or how your money is spent? I dont get it.

Which was how I understood it to be
Then Steven replied .... post 640 which has links

http://www.consumeractiongroup.co.uk...nefits-22.html

I questioned what that meant but he directed me back to the letter, which I don't understand.
Can anyone help?

Sally x

[iancognito]

Re: I Don't Undersatnd This. Anyone Help?

What this letter is saying is that if you have a debt to the bank i.e. a loan, they would be unable to get an attachment of earnings from benefits to pay the debt, however they are saying that bank charges are an expense (like for a stupid example window cleaning) therefore can be paid out of benefits in the same way you can pay your window cleaner out of your benefits should you wish to do so.

The difference in my eyes is:

a) bank charges are not yet proved to be lawful

b) you don't have a choice whether you pay them or not, they are taken at source.

My advice to anyone on benefits is to get yourself a post office account and get your benefits that way, in cash, and pay what you want to out of them.

[littlesally]

Re: I Don't Undersatnd This. Anyone Help?

Thanks jan.
Where does that leave people on benefits at the moment? Can they not claim hardship, have they got to wait until the test case?
Was hoping it would be a bit quicker as the people I am helping really are in a hardship place (homeless!)

Sally x

[iancognito]

Re: I Don't Undersatnd This. Anyone Help?

These are actually 2 different issues, the only thing it affects is the letter of appropriation to stop your bank taking the benefits although in my view this still applies if you have priority debts to pay and list those in the letter.

The banks still have to deal with cases of hardship and if you're on benefits and paying a chunk out of it in charges, I think you are bound to be a hardship case, a financial statement of incomings/outgoings will prove this without too much difficulty.

Its a bit more long winded getting them back than trying to stop them taking them in the first place but can be done through the FOS.

If you want some advice on how to do it, give us a shout, all complaints through the FOS need to be personal so there's no templates available.

[littlesally]

Re: I Don't Undersatnd This. Anyone Help?

Thanks Jan, I think I'm getting the hang of this. I guess it means throwing yourself on the mercy - please don't take the money as I need it for food, bills, children etc.
What I don't understand is the letters quoting a case about benefits and penalties. That was the route I was going until Nat said about the personal route. Does the previous case not stand up?

Sally x

[littlesally]

Re: I Don't Undersatnd This. Anyone Help?

Just noticed my jumbled up letters in the title! Oops

Just seen this otr

Although the two acts of parliament SEEM to say that it is illegal for banks to apply bank charges to benefits, that is not what the acts mean. (The acts being the Social Security Administration Act 1992 governing benefits from DWP and the Tax Credits Act 2002)

Therefore, the only way to reclaim bank charges is the same as for anyone else. And that means waiting until after the OFT case.

So having charges refunded is down to luck - and a good explanation of hardship.
Was really hoping for something I might beable to help with.
It all seems to be at a standstill,
Sally xx

[iancognito]

Re: I Don't Undersatnd This. Anyone Help?

Not entirely true sal, you can still go the FOS hardship route, assuming the benefits are still being paid into the account and the charges are still going out, and you can prove they're making you skint.

[littlesally]

Re: I Don't Understand This. Anyone Help?

The folk at the nightshelter are constantly in a state of hardship, but not sure if heroin, crack and alcohol would be legitimate reasons!! (Not that they are all addicts)
Will keep trying though

Sally xx

[iancognito]

Re: I Don't Understand This. Anyone Help?

Sal why can these peeps not get their benefit from the post office with a card account?

[littlesally]

Re: I Don't Understand This. Anyone Help?

Because they are bloody minded and difficult!!
Most of them have got P.O accounts but the odd few have bank accounts and haven't got around to changing them.

Sally xx