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Bank Charges Not Allowed on Certain Benefits! - Kent Freedom Movement

There is an Act of Parliament which over-rides banks taking charges from your account if you are in receipt of any of the following benefits.

• Income Support

• Tax Credits

• Child Benefit

• Job seekers allowance

• Incapacity benefit

• Disability living allowance

• Attendance Allowance

• CSA payments

• Other DWP payments.

These social security benefits are granted to stop hardship and are designed to meet basic day to day needs, and are exempt and are protected under the Social Security Administration Act 1992 sub section 187. from arrestment in terms of section 187 of the Social Security Administration Act 1992 (see Enforcement of Civil Obligations in Scotland, Scottish Executive report, at paragraph 5.245).

Section 45 of the Tax Credits Act 2002 Chapter 21 part 1 is an identical provision to the said section 187 of the 1992 Act. This stipulates that the banks can not apply any charges to money received as benefit, and any such charges are unlawful and therefore disallowed.

Let me guess - your point is what are welfare scroungers doing with bank accounts?:-3

gmc;1427019 wrote: Let me guess - your point is what are welfare scroungers doing with bank accounts?:-3 You cynical old git .

No... I just wondered If anyone In receipt of any kind of benefit knew the banks could not take charges from benefit. It appears something t hat is not widely known.

oscar;1427021 wrote: You cynical old git .

No... I just wondered If anyone In receipt of any kind of benefit knew the banks could not take charges from benefit. It appears something t hat is not widely known.


It reads as though if there was any money in the account before the benefits started and the account has not gone into overdraft since, or if there is any money paid into the account other than the benefit, the banks could argue that the charges are not being taken from the benefit.

Bryn Mawr;1427657 wrote: It reads as though if there was any money in the account before the benefits started and the account has not gone into overdraft since, or if there is any money paid into the account other than the benefit, the banks could argue that the charges are not being taken from the benefit. I have looked Into this further since bryn and you are right but In cases where a bank account Is used solely for the use of benefits to be paid Into and no other form of savings, It appears they can not apply charges.