Terms & Conditions

[jmembery]

An HBMS file identifies a claimant as having a bank account not previously declared on a claim. The interest generated shows the capital held would be a very large amount.

We write to the claimant asking for evidence of the account. The claimant telephones and states he does not have the account. We ask him to put that in writing, but he refuses.

The main question for me is if, under the regs, we can insist that he puts his statement in writing. On the one hand, the fact that he has signed an application form that does not mention the account gives an argument that he has already put this in writing. On the other hand, given the specific nature of the allegation, it appears reasonable of us to insist he puts his statement specifically in writing.

Where do you think we would stand on suspending his benefit under Reg 13 of the DMA Regs? Any views?

[markp]

Would you not be better off drawing an adverse inference on capital grounds? On appeal he’d have to provide the evidence to successfully challenge the decision wouldn’t he?!

PS I’m nice, really!!

Do I know what I'm doing? The jury's out on that........................

[peterdelamothe]

My advice on this (quite common) issue is to

a) write to the customer again and warn him that unless he co-operates and provides the requested info, ALL previous payments of HB/CTB from the start of the claim will be withdrawn.

b) head the letter “without prejudice to other action that may be taken”.

c) consider a garnishee order against the acount without delay.

Works quite well …

[Anonymous]

I agree that you can make an adverse inference as you have evidence that he possesses another bank account containing substantial capital; if that is not the case then why is he reluctant to make a statement to that effect? An attempt not to make a false statement perhaps? (He may not understand that he already would have done in the application).

If he wishes to you reconsider the decision he will have to write to you stating why he disagrees with it. It will be hard for him to word that in a way that does not include a statement that he has no other bank accounts, in which case you have what you wanted and can decide how then to proceed…

[peterdelamothe]

Also, who dont your fraud investigators just use their powers to go and get copies of the account? I presume you would have enough info to do so and there are clearly grounds to invoke your powers.

[jmembery]

Thanks to all who replied.
The Fraud Officers are on the case, but are finding the Building Society involved to be unhelpful.

[Anonymous]

We would normally conduct an IUC on that basis anyway, even before asking the customer for the account…?

[anthony]

Our fraud dept would use the investigatory powers act to retrieve the account details. Sounds like a good prosecution case…

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