Danish banks have a tendency to set customer debt off from state transfer payments, a particular burden for those on social security who already have very little to live off, according to Berlingske.

According to the report, Copenhagen Council receives many complaints from frustrated recipients who have difficulty in making ends meet.

“People call us and say they have nothing to live off as the bank has taken their money,” Niels Bauer of the Transport Payment Service tells Berlingske.

Although he is unable to say exactly how many people are affected, he suggests the malpractice probably affects many of the 22,000 people currently on Copenhagen Council social security.

The council does attempt to help people in various ways. Either through a dialogue with the bank or by paying social security as a cheque, or to a bank other than the one in which the recipient has debts.

The Danish Financial Supervisory Authority has confirmed that it is aware of the problem of banks grabbing social security payments, and the authority now plans to act.

“If the bank takes all of the social security, that is illegal. People must have something to live off. We are very aware of the problem and have studied some of the banks’ methods and can see that there is a need for universal instructions,” says FSA Department Head Anette Bjåland Andersen.

Bjåland says she will be contacting the bankers association in order to find a solution to the problem.

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