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Banks Raise Concerns Over Benefit Debt Recovery Powers

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naomi24 | 13:32 Thu 23rd Jan 2025 | News
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//The UK banking industry has warned that government plans to crackdown on benefit fraud could leave banks at risk of breaking consumer protection laws.

A new law unveiled on Wednesday would allow the Department for Work and Pensions (DWP) to reclaim money from accounts without a court order.

Ministers argue this will speed up the debt recovery process and help contribute to a wider crackdown on benefits fraud.

But UK Finance, the biggest business group representing British banks, has told the BBC the plans could undermine the banks' own efforts to protect vulnerable account holders.//

 

https://www.bbc.co.uk/news/articles/cj02918gqdvo#

 

Without a court order?   Am I alone in thinking that this government is hell-bent on claiming more and more control?

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There are existing laws that enable recovery. Perhaps they need sharpening up but I don't like the idea that some jobsworth civil servant can access bank accounts without any sort of judicial authorisation.
13:47 Thu 23rd Jan 2025

very insidious to have civil servants able to plunder bank accounts at will. Innevitably there will be errors and innocent people's money will go missing. Bad very bad.

I'm all for reclaiming money from fraudsters but this is a step too far.

Yes your right, getting more and more back from scammers and crooks robbing the country. And to enable them to do that they need more and more control. Its been a long time coming, the cons were to afraid to make such moves. 

There are existing laws that enable recovery. Perhaps they need sharpening up but I don't like the idea that some jobsworth civil servant can access bank accounts without any sort of judicial authorisation.

It would seem this government wants to make new laws for anything and everything when there are already laws in place which could be enforced.

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Neither do I, TTT.

//the cons were to afraid to make such moves. //

Well of course they were, its not right.

They should use the Courts, tweak the law if required to speed it up but the Courts must be the ones to authorise it.

Anyone who has legitimate income going into their bank accounts haven't got a worry in the world. I hard to believe anyone would object to such a move, unless they themselves are up to no good.

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Nicebloke, and if some faceless, nameless civil servant makes a mistake is that acceptable to you too? 

They have tweaked law, in fact they've given it two tweaks. :0)

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They've not 'tweaked' the law.  They've ridden roughshod over the law.

13:54 ah the old "nothing to hide nothing to fear" maxim!

At best there will be errors, accounts emptied by mistake, pain and aggravation for those affected, at worse it could be used by future governments to plunder the bank accounts of the populous. NTHNTF is the refuge of the terminally unmindful. Sounds great until you think it through and realise what power you are giving the state forever.

13.57 Dont be silly, no its not, everything is listed on a bank statement for both parties to see. Ruddy hell thats the fastest BA I've ever seen :0))

//it could be used by future governments to plunder the bank accounts of the populous//

And that is the very nub of it TTT, but dont expect nicebloke to understand that.

It really isnt beyond any imagination to envisage scenarios where futuer Goverments would abuse this.  Next stop, bad tweet - empty bank account.

//everything is listed on a bank statement for both parties to see.//

Great, so you can see they have taken it.

Now try getting it back, Banks wont credit you unless they get it back from the Government.

You really are so naive it is unbelievable.

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Nicebloke, no one should have the freedom to raid anyone's bank account.  That's more than silly.  It's frightening.

Roughshot is what is needed this country has been losing billions over the years by scammers. Msybe the banks have something to hide Eh?

Like i said, nothing to hide, nothing to worry about, simple as that.

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Don't be ridiculous.

sorry, i disagree with you. if someone is a benefit fraud, i would expect the govt to do anything they can to recover the money

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Bednobs, I too think the money should be recovered but not without safeguards.  

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