Banks are not allowed to use Housing Benefit or any other income related benefits to repay an overdraft

Banks are not allowed to use Housing Benefit or any other income related benefits to repay an overdraft

“This Right of Appropriation” allows a customer to assign funds entering their bank account to specific events and needs. I.E Banks are not allowed to use Housing Benefit or any other income related benefits to repay an overdraft as the law provides that a customer needs a minimum amount to live on . Arguably , the money is not actually the claimant’s, they are just the agent too pass the money along to the landlord. If the bank do use this money to offset an overdraft the customer should be advised to seek legal advise or contact a CAB for further help and claim back any charges.” The customer will  need to give the bank written instructions and to make it clear that it is to cover all future payments. The information goes on to say that although banks should be aware , some banks may not understand the process as it isn’t used very often

http://www.landlordreferencing.co.uk/forum/discuss/community-forum/the-first-right-of-appropriation/#p14542

 

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2 Comments

  1. Ultimately, I will continue sending money to my mother because I want to make her happy. She’s taught me a valuable lesson in all of this – I’ve learned how to make my future children share their money with me.
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