Can the bank actually take benefits to pay charges?

[beckyt]

For some reason the last few months my 'available balance' hasn't actually been my available balance and I've gone overdrawn a few times. Of course I've had alot of charges each month - although this has hopefully stopped now because I'm keeping a constant tab of every penny that goes in and end and ignoring the 'helpful' available balance amount!

Have they been able to take money from my benefits to pay these charges? Thanks

[FlamingParrot]

Re: Can the bank actually take benefits to pay charges?

The available balance includes both your own money and any O/D facility. Sometimes transactions are not recorded immediately and your available balance may seem higher than it should be until it's updated.

It may be possible to reclaim charges on the basis of hardship if you are relying on benefits because benefits are intended for you to live on, not for bankers to line their fat pockets. :rant:

You could also reclaim charges if they are excessive as per OFT guidance which suggests £12 as opposed to £25 or so.

[leclerc]

Re: Can the bank actually take benefits to pay charges?

The available balance includes both your own money and any O/D facility. Sometimes transactions are not recorded immediately and your available balance may seem higher than it should be until it's updated.

It may be possible to reclaim charges on the basis of hardship if you are relying on benefits because benefits are intended for you to live on, not for bankers to line their fat pockets. :rant:

You could also reclaim charges if they are excessive as per OFT guidance which suggests £12 as opposed to £25 or so.

I hate having to correct people and especially someone like yourself FP but I have to. First things first, the highlighted part of your post FP is because the OFT guidance relates to Credit Cards.

For Beckyt, the answer is yes the bank can take charges from your account for being overdrawn however, should those charges impact on your ability to pay essential bills ie rent/mortgage, electricity, water, gas, council tax, but excluding loans and credit cards then you may be able to ask the bank to consider refunding some charges on the basis of financial hardship(based on Section 9 of the Lending Code). The other thing the bank might do, once you approach them and if it was the first occasion occurring charges is refunding it to you as a gesture of goodwill since it might be considered as a one off error.

The other thing I would do and I do this anyway is either: buy a notebook and when available and balance are the same(I use internet banking which helps), write down in your book what you have spent and use a calculator(available on most computers/laptops under accessories) keep a running total. I personally, keep all receipts(especially from the pub so I know how much I have spent). Until the receipts have gone out of my account and I can see that they have gone out, I keep the receipts. Once they have gone out I throw them away because in my head I am rounding up the amount so for example £6.51 is £7.00 so that I have a system which is memorable so that I do not go overdrawn.

One last thing I want to caution you about, Beckyt, you may well read about the Social Security Administration Act 1992 section 187 which talks about benefits being something you cannot take charges against however, if you have a read of Tom Brennan's explanation on here(link coming up) then you will see that that assumption is incorrect: http://www.legalbeagles.info/forums/...999#post281999

[bluebottle]

Re: Can the bank actually take benefits to pay charges?

Becky,

If the bank are taking your benefits, speak to the DWP about a different payment method. The DWP do mention this in their letters to claimants.

[FlamingParrot]

Re: Can the bank actually take benefits to pay charges?

I hate having to correct people and especially someone like yourself FP but I have to. First things first, the highlighted part of your post FP is because the OFT guidance relates to Credit Cards.

Not at all, correct away, it's much appreciated!:clap2: That's what we're here for, to get the facts straight. I should really double-check my sources, people often 'speak' in such a way you end up thinking they are authorities on the subject :horn:when in fact that's not the case. :ohwell:

[enquirer]

Re: Can the bank actually take benefits to pay charges?

As leclerc suggests:

Six columns: (1) Date of transaction. (2) Type of transaction (Direct Debit, Cashpoint, Cheque number and so on.) (3) Who it was paid to. (4) Money amount OUT. (5) Money amount IN. (6) Running balance.

When a cheque is written or any other debit made, it may not be deducted immediately, so whatever you see on a cashpoint screen is unlikely to reflect the true state of affairs. Similarly, 'available' means real money and whatever they are prepared to lend you through an overdraft. It does not refer to what you've actually got.