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Why do they take money out of your benefit when this law is in place

There is an Act of Parliament which over-rides banks/Creditors 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 is an identical provision to the said section 187 of the 1992 Act.
This stipulates that the banks/Creditors can not apply any charges to money received as benefit, and any such charges are unlawful and therefore disallowed.
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Lozzie666
 
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Joined: Fri Jan 29, 2010 1:21 pm
Location: Cheshire

Replies

  • mikehughescqmikehughescq Posts: 3,451Member - under moderation Disability Gamechanger
    Afraid you may have misread that. It relates only to the cessation of deductions upon bankruptcy. Outside of that then the relevant regulations determine which benefits can have deductions and to what extent. 

    If you have debts but are not bankrupt then they can deduct in accordance with the regulations. Equally if you have debts which accrue after bankruptcy they are able to deduct for those too. 
  • puppy999puppy999 Posts: 8Member Listener
    edited November 2017
    How can I have misread as it does not state or make any reference about bankruptcy  
  • BenefitsTrainingCoBenefitsTrainingCo Posts: 2,679Member Pioneering
    puppy999,

    We are not money advisers so I can't be much clearer than Mike on this point, but I believe that they are correct. There's nothing in law to stop creditors from seeking to recover debts just because you on benefits. s187 of the Social Security Administration Act 1992 is about what happens on bankruptcy (sequestration in Scotland).

    As Mike says, depending on the regulations, some benefits allow third party payments to be made direct from benefit towards certain debts for example fuel arrears, rent arrears.

    Will
    The Benefits Training Co:
    Paul Bradley
    Michael Chambers
    Will Hadwen
    Sarah Hayle
    Maria Solomon
    David Stickland
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