Banks Raise Concerns Over Benefit Debt Recovery Powers

[naomi24]

//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?

[bednobs]

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

if you read the article, the last govt had similar plans, and this is after "years" of talks.  So you can't really just blame 'this' government, or accuse 'this' govt in being controlling

[youngmafbog]

I think we all think the Government should recover the money, but just raiding Bank accounts without a Court order is not the answer.

[youngmafbog]

Ye we can, *this* Goverment is the one implementing, who do you think we should point the finger at?

[bednobs]

are they implementing it thogh?  it has to get thru parliament first. it was chucked out when the conservatives tried, so it may get chucked out again

[chelle7272]

/if someone is a benefit fraud, i would expect the govt to do anything they can to recover the money//

The thing is though the DWP get it wrong a lot. They have ripped me off to the tune of £2000 in the past. 

If they don't need a court order it's unlikely anyone will be ensuring they have the DWP have their facts right before emptying potentially innocent peoples bank accounts. 

[nicebloke1]

Lets make it simple, the people who have been claiming long term benefits are being looked at. Ridiculous? If you've never claimed such benefits over the last x amount of years, your account is of no interest. If you want to make a mountain out of a molehill carry on. I agree fully with it so nothing further to had.

[bednobs]

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

the last para talks aboutthat

[youngmafbog]

Yes, lets make it simple.

You were claiming benefits, some terp at the DWP (and most are) decides you claimed too much.  You dipute this but while the dispute is ongoing they just take it anyway.  The dispute goes in your favour but you try getting it back plus appeasing your creditors who may well be about to take you to Court for non payment.

All we are asking is for a simple Court approval, this should not be lengthy and is simply a fail safe to stop some DWP jobsworth taking it whatever.

Why is that too much to ask?

 

[naomi24]

You've clearly never fallen foul of idiot bureaucrats and mindless bureaucracy as others have, nicebloke.  Off you go then.

[youngmafbog]

That last paragraph says nothing at all.  An annual review isnt going to help someone, who is no doubt on the bones of their ***, who has had their account cleared incorrectly.

[ToraToraTora]

The most common error in admin is tranposition of numbers. So NB suppose they mix up the target bank with yours, different by one digit. They empty your account the day after you are paid. All your DDs bounce, you are skint. You'll have weeks of faffing about to get the dosh back. I don't think you realise the power you are giving to this and future governments.

[tomus42]

//Similar plans drawn up by the previous Conservative government failed to make it through Parliament before last July's general election.//

Not just this government then.

Anyhow, it seems wrong.

[Canary42]

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

Tell that to all the wrongly-jailed postmasters. These scrupulously honest folk had nothing to hide but were mercilessy victimised for software failures.

[tomus42]

//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.//

Yeah, they're all about protecting the vulnerable aren't they the banks. 😆

I'm not sure what's going on here tbh. The idea of the government helping itself to bank accounts when they see fit doesn't sound good.

[THECORBYLOON]

If a claimant has been overpaid, is no longer on benefit and is employed, it can be recovered from earnings if the former claimant won't agree to a repayment plan.

The process is similar to an Attachment of Earnings where deductions from earnings are paid to the Court.

Since 2013, the DWP has had the power to issue a Direct Earnings Attachment to the employer for them to make deductions from earnings and pay to the DWP.

There is no court involved in the DEA process.

[tomus42]

I think when the Tories first proposed this one of the Labour Lords said why don't we go first. Give our bank details  to the authorities and if they think we're overclaiming expenses or whatever they can help themselves to claim it back.

Unsurprisingly it went no further.

The same will happen again probably.