Benefits & bank arrestment in Scotland

Charitable community controlled law centre in Glasgow, UK.  Charity no. SCO 30193.  www.govanlc.com

 

 

 

 

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If a creditor arrests your bank account and your account income is derived mostly or wholly from social security benefits or tax credits, then this income may be  protected against arrestment in law.

This may be in terms of Scots common law, section 45 of the Tax Credits Act 2002 and section 187 of the Social Security Administration Act 1992. 

July 2008 update: Sheriff Principal Kearney holds identifiable benefits and tax credits are not subject to bank arrestment (opens as PDF - decision from page 20, paras 43 to 53) - overturning North Lanarkshire Council v Crossan 2007 SLT (Sh Ct) 169. GLC is obliged to Andrew Fitzpatrick of the MFY Partnership Solicitors (Airdrie & Cumbernauld) for a copy of this judgment; MFY acted for the debtor and appellant

If your welfare payments are arrested here is a standard letter your advisor (or you) can send to the Sheriff Officers to seek release of your money:  pro forma letter [htm]; pro forma letter [pdf].

If you bank applies charges in processing a bank arrestment where your account income is derived mostly or wholly from social security benefits or tax credits, then your advisor (or you) can send this pro forma letter to your bank to request a refund of bank charges: pro forma letter [htm]; pro forma letter [pdf].

If you are successful in getting monies released or charges refunded, let us know at: [email protected].

example of bank charge letter

example of bank charge letter

 
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