Chelmsford City Council

Chelmsford, along with the rest of England, is now in lockdown until further notice. You can find out what this means and get other useful information on our coronavirus updates page.

Tell your bank how you want money paid into your account to be used

If your income has been affected by coronavirus and you need help with your rent or paying your Council Tax, we want to provide you with some information to help you at this difficult and uncertain time. You can read more on our coronavirus updates page. You should also be aware of coronavirus scams. For more wide-ranging advice regarding your finances, you may find this Money Navigator Tool helpful.

You can tell your bank to reserve certain payments into your account and only use them to pay certain bills. This is called a “first right of appropriation of funds” order.

For example, you could ask them to only use your housing benefits payments for your rent, rather than using the money to pay another bill.

Banks are not allowed to use housing benefit or any other benefit to repay an overdraft.

You can use this for any money paid into your account, including payments from the self-isolation scheme. You will need to tell your bank what payments you want to use for which bills.

 

How to request a first right of appropriation of funds order

You need to write to your bank to request this, at least seven days before the payment you want to reserve is due.

You can download a template letter from National Debtline to request this.

You should keep a copy of the letter in case there is any dispute later. You may want to ask your bank for a written acknowledgement of your request.

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    Last updated: 09 October 2020

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