bank charges

[maggs1703]

can someone help me please my enquiry is about the social security administration act 1992 this apparently stops banks charging people on benefits but they still do i have spoken to the bank and thye say it is not true can any one shed any light on this please

[Sammy Snake]

They can still apply charges to your account even if they are not allowed to take it out of your benefits - it will just mean that you gp further and further overdrawn. Best not to incur any charges in the first place:

Social Security Administration Act 1992
Miscellaneous
Certain benefit to be inalienable **

187- Subject to the provisions of this Act, every assignment of, or charge on-
(a) benefit as defined in section 122 of the Contributions and Benefits Act;
(b) any income-related benefit; or
(c) child benefit,
and every agreement to assign or charge such benefit shall be void; and, on the bankruptcy of the beneficiary, such benefit shall not pass to any trustee or other person acting on behalf of his creditors.

** inalienable = not to be forfeited.

The effect of this legislation is to make it unlawful, regardless of any terms and conditions imposed by the bank upon an account, for you to take charges from any money deposited which is solely consisting of Social security benefits.

[maggs1703]

the only income we recieve is benenfits and they still charge us is this allowed many thanks

[Sammy Snake]

Yes - as said in my post above.

An example:

- say the balance in your account was �100 overdrawn / over the limit.
- You then had �50 benefits paid in making you �50 overdrawn.
- The Bank has to allow you to draw out the whole �50 of benefits, taking you back to �100 overdrawn.
- They then add on a �30 fee for being over your limit, taking you �130 overdrawn Whic will incur more fees)

Your overdraft will go up and up but they are must allow you to withdraw the full amount of benefits you receive, they can't keep any of it to reduce your overdraft or cover the charges.

The best thing you can do it to open a basic account with another Bank and get your benefits paid in there. Don't go overdrawn and don't incur any charges. Then come to an arragement with the first bank to repay what you owe them.

[Info Bank]

Wish I could live on Benefits ....And still ...See having ...an iternet as a Basic living.

Obviously im missing out in life.
I work and earn things.


Maybe im working to hard to understand ....Sorry.

[quizzler]

Infobank - have you thought that Maggs may be using the internet in her library or on a friends computer or at place where people can get free access. Just cos they live on benefits you don't know their circumstances so it's not fair to judge.

[maggs1703]

thankyou for your answers it has been a great help just to let info bank i actually go to my sons house to use his pc as i cannot afford to have one of our own but i also agree with sammy snake do not judge you have no idea about my circumstances and i value the majority of the answers the answerbank provides so again thank you for all your help it has been very informative thank you