Thursday, July 14, 2011 - Posted by Philip Harvey
There are rules surrounding Centrelink payments and paying back debt. You can only take funds from someones savings account in very limited circumstances of where a debtor overdraws a Savings Account. You cannot take funds to pay a Loan Account, only an overdrawn savings account.
Further to this, where a debtor has overdrawn a Savings account you are limited to how much you can take from the Debtor from future Centrelink Payments. This is limited to 10% of the Centrelink payment, with the debtor retaining 90% of the funds.
There are limited instances where Centrelink Payments are not protected. These include;
- fraudulent transactions
- dishonest transactions
- all other unlawful transactions, conduct or activity