What does First Right of Appropriation mean?
Put simply it means that when you pay money into your account, you have the right to tell the bank how you want that money to be used. Therefore you must inform them how you want the money to be used at the time of payment. If you don’t give your bank instructions at the time of payment, they may decide how the money should be used.
Example - Your wages from your part-time job or a benefit / hardship / support payment from the council are due to be paid into your bank account and you need the money to cover your electricity and food bills. However, you have exceeded your agreed overdraft limit by a couple of hundred pounds and the bank wants to use any money coming in to reduce this.
How can you exercise your right?
It is preferable to send written instructions to your bank in case of any later dispute. It is also a good idea to request that the bank acknowledge your letter or you could send it via recorded delivery.
Example wording for a letter giving instructions to your bank.
Dear Sir / Madam,
Re: (Insert name, address and account number)
A BACS payment of £500 for credit to my account number (insert your account number) / my wages will be paid into my account on (insert date). I am exercising my first right of appropriation over these funds and wish you to pay the following items from them:
£200 ‘Cash’ withdrawal to cover my living expenses.
£160 Cheque to Mr Landlord to cover my rent.
£40 Direct Debit to Phone Co on 5 August
£20 Direct Debit to NPOWER on 6 August.
Yours sincerely
(Insert name)
This should ensure payment of the items listed. Where there is anything left over the bank will use it as it sees fit.
Where the same instructions are to be repeated every month, a sentence could be added to the letter stating ‘these instructions are to be effected every month until further notice’.
Remember to keep copies of all correspondence with the bank.
When is it not useful?
Although appropriation can be a useful tool in the short term, the bank is only likely to accept instructions for a short time before withdrawing banking facilities, so at some point you may need to open another bank account elsewhere.
Where you have a current account and a personal loan with the same bank, appropriation cannot be used to stop an internal transfer to the loan account.
What can I do if the bank won’t accept instructions?
Pay the money into another account if you can.
If the money has been paid in and the bank won’t return it, immediately start the bank’s complaints procedure.
FAQs
First Right of Appropriation gives you the right to tell your bank/building society how you want the money paid into your account to be used. You may want to do this if money is due to be paid into your account and the account is in overdraft or there are bills or other payments due to be paid from it.
What is the right to appropriation? ›
What does First Right of Appropriation mean? Put simply it means that when you pay money into your account, you have the right to tell the bank how you want that money to be used. Therefore you must inform them how you want the money to be used at the time of payment.
What is the first right of appropriation on the National Debtline? ›
First right of appropriation gives you the right to tell your bank or building society how you want the money paid into your account to be used. National Debtline have a sample letter you can send to your bank or building society.
What is a letter of appropriation? ›
Use this letter when you need to ask your bank to pay particular bills out of your account from money you have paid in. This is known as exercising your 'first right of appropriation'. You can choose to send a letter in your own name or in joint names.
Can a bank take money from your savings account without permission? ›
No, banks cannot legally take money from your account without permission. However, they can withdraw funds for specific reasons, like overdraft fees, unpaid loans or debts (under the right of offset), suspected fraudulent activity, or legal judgments.
What is the first right of appropriation? ›
First Right of Appropriation gives you the right to tell your bank/building society how you want the money paid into your account to be used. You may want to do this if money is due to be paid into your account and the account is in overdraft or there are bills or other payments due to be paid from it.
What is First Amendment appropriation? ›
Appropriation, also referred to as misappropriation, is the unauthorized use of a person's name, photograph, likeness, voice, or endorsem*nt, often for financial gain. Although appropriation may involve speech or communication, the First Amendment does not protect its practice.
What are appropriations in simple terms? ›
Appropriation: A law of Congress that provides an agency with budget authority. An appropriation allows the agency to incur obligations and to make payments from the U.S. Treasury for specified purposes. Appropriations are definite (a specific sum of money) or indefinite (an amount for "such sums as may be necessary").
What does right of appropriation mean in real estate? ›
Taking private property for public use, through the government's power of eminent. domain. Also called: Condemnation. appropriation (noun)
What is the default rule of appropriation? ›
In default of appropriation by the debtor the creditor is entitled to determine the application of the sums paid, and may appropriate them even to the discharge of debts barred by the Statute of Limitations.
Appropriation occurs when a defendant uses a plaintiff's name, likeness, or image without their permission for commercial purposes.
What is the meaning of appropriation letter? ›
1 Appropriation or re-appropriation represents the allotment of a particular sum of money to meet expenditure on a specified job as enunciated in the Detailed Demands for Grants. It is operative only for the financial year for which it is made.
What are letters of appropriation? ›
Re: Right of Appropriation
I have set up a standing order / direct debit / will withdraw the money for the above use, and I would be grateful if you would ensure that any other payments out of my account do not interfere with this withdrawal.
Can someone check my bank account balance without my permission? ›
No one can check your bank statement without your permission. Unless you give out your account number, banks do not release information regarding your bank statement to unknown third parties without your consent.
Can a bank legally not give you money? ›
Yes. Your bank may hold the funds according to its funds availability policy. Or it may have placed an exception hold on the deposit.
Can a bank deny you access to your money? ›
Banks may freeze bank accounts if they suspect illegal activity such as money laundering, terrorist financing, or writing bad checks.
What is an example of appropriation? ›
Examples of Appropriation:
Using or creating art that only looks at a part of a culture. Creating art that reinforces a stereotype about a group of people.
What is the rule of appropriation? ›
The general rule is that the person paying the money has the primary right to say to what account it is to be appropriated and if the debtor makes no appropriation, the creditor has the right to appropriate, and, if neither exercises the right of appropriation, one may view the matter as one of account and thus, ...
What is an example of appropriation in law? ›
In Jeppson v. United TV (1978), a Utah man won on a claim of appropriation because a television station called him on the air after picking his name out of a telephone book as part of a dialing for dollars promo. He claimed the television station used his name on the air without his consent.
