High Hartz IV Deductions for Standard Benefit Payments

High Hartz IV Deductions for Standard Benefit Payments

Quite a few Hartz IV recipients do not have their own account. This is despite a legal provision that in principle all banks and savings banks must have an account (keyword: account for everyone). It is the recipients who suffer because they have to pay high fees when they have to cash checks.

Yet many banks refuse customers who seek help opening an account. The refusal is justified by the so-called “counter-hygiene” or also because of pending insolvency proceedings or a situation of over-indebtedness.

Cash payments of social benefits

As a result, many people do not have a bank account. Those affected should receive a cash benefit. However, there are costs associated with a cash payment. This is how Hartz IV cuts take place indirectly.

Beneficiaries who do not have an account will receive a check from the employment office. You must have this paid out at the post office or at the Postbank. There are costs associated with this. The left in the German Bundestag therefore began a small request to the federal government to fix the size.

Almost 37,000 people affected

The federal government’s response shows that some 438,000 such payment transactions with deductions took place last year. Extrapolated, this results in approximately 36,500 affected Hartz IV recipients having to cash such a check.

For example, about 3.5 million euros was paid out to beneficiaries via the Postbank. The beneficiaries had to accept a benefit discount of EUR 96 per year.

Deutsche Post also charges the following fees for cashing checks, independent of the employment office:

  • for payouts up to 50 euros: 3.50 euros
  • for payouts of more than 50 euros to 250 euros: 4.00 euros
  • for payouts of more than 250 euros to 500 euros: 5.00 euros
  • for payouts of more than 500 euros to 1,000 euros: 6.00 euros
  • for payouts of more than EUR 1,000 to EUR 1,500: EUR 7.50

Those who have it bad are treated even worse

The left criticized this austerity procedure. If you’re already so badly off that you’re denied an account, you’ll be treated even worse. “Not having an account should not be penalized with a cash deduction. People who cannot open an account must be helped.”

Fight back when an account is declined

In this article you will learn how to fight back when an account is declined by the bank.

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