JSA (same day payment) - Financial difficulty

[Runnah]

Hi there

I'm currently going through a tough financial period, mainly due to charges on my account. I've spoke with my bank and they've removed charges, but can't remove interest in going to incur. This interest will once again take me into a charging period at £8/day, this is going round in circles every month.

Therefore I really need a same day payment from JSA next week, but I received one in October last year.

Is there any genuine way of getting this from DWP if I explain my circumstances?

Thanks

[nukecad]

£8 a day interest seems hell of a lot. I assume this is overdraft interest (probably over your limit so extra charges/higher interest?).

Is a same day payment going to help?
Is it not just going to be taken by the bank straight away?
Even if not, it's only putting off the problem for another fortnight.

You need to try and get something more sorted out with your bank. (I know it's difficult).

How about asking the bank to transfer you to a 'basic' account, and convert the overdraft into a loan to be paid off over time.
At least that way the overdraft charges would stop and there would only be interest on the loan, giving some chance of gradually reducing it.


It's a trap.
You run up an overdraft while waiting for the DWP to get their fingers out and give you the benefit you should have, and then have no chance of clearing the overdraft down again because it's been inflated by charges and interest so even if you get a backpayment it's not enough to clear it.

I've often wondered just how much benefit money is going in bank charges, and interest on overdrafts that we were forced to run up while waiting for the DWP.
It must be in the billions that the banks are making from having benefits paid into acounts rather than the old girocheques.
Of course it was only done to save the DWP/government money - at our expense.

[Runnah]

Hi Nuke,

Sadly, Natwest put their charges up to £8/day from £6 a few months ago and neither are ideal. I was previously a student and have graduated, so my account type has changed and I've not been able to get out of the overdraft.

It's a living nightmare and unless I get paid days before the charges go out, I just get put into another charging period. I can only avoid these charges by SDP, which I had in October, and how likely is it they can help? Otherwise £40 of charges coming my way.

[pmlindyloo]

May I suggest that you speak to a free debt advice organisation - Step Change are highly recommended - because your overdraft is, in fact, a debt.

They might suggest that you open a basic bank account (not to be confused with a simple new account - there are no overdraft facilities) with another bank that you have no 'ties with'. This is because if you have another account within the same bank they may 'offset' money from one account with another.

If Step Change suggest this then you would need to inform everyone of the new details of the account so that all income is paid to your new account. You can also set up DDs with a basic account.

The overdraft then can be treated as a debt. The bank should consider removing all overdraft fees particularly since you are in financial difficulty. Have they refunded any of the charges? They should at least consider this and you have right to complain if they don't.

Read this:

https://www.moneysavingexpert.com/reclaim/bank-charges

If you have other debts then Step Change will give you your options for dealing with these.

As you have gone into an unauthorised overdraft it might also be realistic to check that you are receiving all the help you can - for example with your utilities. CAB could help with these aspects.