I refered a client to our local JC+ today for a crisis loan. They told him that as he was employed and had a bank account he would need to provide written proof that his bank wouldn't offer him an overdraft or a loan before they would consider his application. Never had this request before. Anyone know of any legislation or case law about this?

A customer asking for a crisis loan has to show that he has 'no other means' available to him. So if he has a bank account or even a credit card he has to show that he has exhausted his overdraft or credit facilities in order to satisfy the relevant Social Fund direction for a crisis loan.I am unaware of any case law, but I am sure that other readers will be able to help there.

See CPAG WBH 2005/2006, p.538, "Resources" - which states that, in terms of what resources are available to a claimant to meet a short term need:

'Resources' are not defined in the SF directions. The Social Fund Guide says all resources which are actually available to you, or could be obtained in time to meet the need, should be taken into account. Resources available on credit should only be taken into account if you are not on income support, income-based jobseekers allowance or pension credit and can afford the required repayments. (para 4102 SFG)

So it would appear from the last sentence that, as your client isn't in receipt of the stated benefits, Judith is correct that the SFO can require that your client takes advantage of any other means of raising some money to tide himself over, unless he could not afford subsequent repayments.

Thankyou for the replies. You were both right, SF can make this request. Client has now provided this information and should be getting a decision this afternoon.

All OK now. After three seperate visits to the JC+ office 15 miles away the client has been awarded a crisis loan.