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Written by freakyleaky

Right of Appropriation - Stop the bank from taking your money

 You should ask for an urgent meeting with your bank to discuss your position.

Hand this letter and I/E schedule to the person you are meeting and talk them through it.

Make notes of what is said.  After the meeting, send a copy of this letter and the I/E schedule to the same branch addressed to the same person.  Also send a copy to the customer services department and say in a covering letter that you are confirming what you have told the branch.

You can also confirm what was said at the meeting - so "... Thank you for agreeing to help me ...." or " ...I am very disappointed that you have not agreed to comply with my notice of appropriation ..."

Make sure that you log everything in writing.  It will help you if you have to take action against the bank later.

You must have read the Appropriation FAQ here

 

You will need an Income/Expendture form.  There is one here

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[your address]

[bank name & address]

[date]

NOTICE OF APPROPRIATION



Dear Sir/Madam,

ACCOUNT NUMBER: xxxxxxxxx


I am writing to you to give you formal notice that I am asserting my Right of Appropriation in respect of certain money which will be coming into my account.  Please see my attached income/expenditure schedule.

 

The reason I have to serve you with this notice is that I am presently on a reduced income, namely [I am on XXX benefits]  [reduced income while convalescing from an illness/injury][have just lost my job][explain problem]

I anticipate that I will be in this situation for about [xxx weeks/months]

 

This Notice of Appropriation is intended to be effective for [XXX period of time].  I will keep you updated of any change in my circumstances and in any event I will renew this notice in 3 months [or other period – not more than 3 months]

 

The Right of Appropriation entitles me to reserve as much of my income as is necessary to meet certain basic living expenses.  The bank is required by law to respect my appropriation of these funds even though it may mean that my subsistence expenses are prioritised over my debts to the bank – for instance bank charges.

 

If you have any doubt about this, please refer to your legal department or your line manager for guidance.  Please note that the Right of Appropriation does not only apply to income from benefits or tax credits.  The Right applies to any income regardless of source and which is necessary to cover subsistence expenses.

 

Please note that the Bank is obliged to act according to the law in all its dealings with my account.  The Bank is obliged to act in accordance with the Banking Code of Practice and also in accordance with the new FSA Banking: Conduct of Business Regulations which came in force 1^st November 2009.

 

As you can imagine, the subsistence expenses which are appropriated by this Notice are extremely important.  If the Bank ignores this Notice or refuses to comply in any way, I shall be obliged to seek immediate assistance in the County Court.

 

I would point out to you that the Bank has a duty under the new FSA regulations to enter into dialogue with me and to treat me fairly.  If you have any questions about this Notice or about my income/expenditure schedule, please contact me about the matter rather than taking some precipitative action.

 

 

 

Yours faithfully

 

 

 

 

Sign the Letter