Bank Witholding Tax Credits

kennyc · 14 October 2006 at 1:10PM

Hi, please accept my apologies for being a long time lurker/reader but infrequent poster.
My O/D accoount with a high street bank was sold to a debt collection co. in March 2006. but when we renewed our tax credit declaration in August we then qualified for working Tax Credit & Child tax credit (we hadn't qualified for Working TC for some 2 1/2 years).The WTC sum of £600 was paid into the then "sold on" account the day BEFORE we recieved our award paperwork.
HM Customs & Revenue were told 2 1/2 years ago to no longer pay any sums into my account as it was simpler for all sums (my wages inc.) to be paid into my wifes account as she handles all the family finances..it made sense to have all sums in one place.
It appears that that information never made it on to our file with HMC&R, and therefore they paid money into an account no longer used.
The real problem is that the bank will not release the funds incorrectly paid into this account until there is an agreement in place with this debt collection company.i have sent a covering letter, a full CCCS prepared SOA, and a £1 postal order( as a token payment) to them.
they have said they have recieved the postal order but they have no detials of any SOA or letter explaining the situation.

My questions are these...
1) can banks withold funds paid in by HMC&R? , as i have been told (but only by a friend of a friend) that these are essential funds and that even when she was over her overdraft she was released tese funds by her bank.

2)If i cannot reach an agreement with this debt collection company( who have been callling at my parents address even though they no i havent lived there for years!) is there any way i can get the bank to "encash" these funds.

3) How long does an official complain to HMC&R take to get actioned as i wrote enclosing all the information 2 weeks ago and have still heard nothing....

Aplogies if anything is vague or unclear, please ask and i will vounteer any relevant information...we really are at our witts end with this constant struggle to keep our heads above water.

Thanks for any help or shedding of light that anybody can provide as i can find very little on this type of subject.

Thanks Again

Biffa · 14 October 2006 at 1:56PM

Speak to MRC as they may be able to pull the payment back if they sent it to the wrong account and then pay it into the correct account.

It might also be worth setting up a seperate account with a different bank just for your WTC to be piad into. Co_op do a Cashminder account - no overdraft or cheque book but online banking, cash point card and direct debits etc, so you could pay it into there so you can always get hold of it. Good luck though.

Biffa · 14 October 2006 at 1:56PM

sorry, that was supposed to be "speak to HMRC" - oops!

kennyc · 14 October 2006 at 3:57PM

Thanks Biffa, have all monies (tax credits & wages) now paid into my wifes account (has no overdraft on it).
have spoken to HMR&C but they said unless the bank return the funds (which they wont until an agreement is in place) there is nothing they can do.

One other thing is that the debt was sold in marech 2006 for £1691.
the £600 WTC was paid in the account (already sold on) in septmeber 2006
When i spoke to the debt collection company, they told me me that the £1 postal order had been recieved and my balance outstanding was now £1690...

So who actually has the £600?? the bank have recieved the funds and not notified the debt collection company otherwise my debt would have been reduced by £600 in septmeber and my balance would be £1091/0.
Now i am confused.....

kennyc · 14 October 2006 at 10:21PM

sorry i forgot to mention that although the DCA (moorecroft) had recieved and cashed the postal they refused to confirm any reciept of the letters and SOA, which was strange as they were in the same envelope.
Does anyone else have / had any dealing s with this DCA? How were they with you? the last chap i spoke to was very unhelpful & rude.
Makes it understandable when people like us are in difficulties but are trying to resolve things and pay our way, start to feel like ignoring the calls and letters if this is how the advisors at these companys treat people.

Anyways thanks for looking everyone, maybe someone has had dealings like this in the past and may have words of wisdom.

Thanks Again!!

kickingkay · 14 October 2006 at 10:42PM

Hi, i would write to the complaints department C/O Linda Day, @ Inland Rev
COMPLAINTS MANAGER
MRS LINDA DAY
HOCKNEY HOUSE
SALTSMILL ROAD
SHIPLEY
WEST YORKSHIRE
BO18 3ST

i recently had a direct debit payment come out of my account that shouldnt have (their mistake) tehrefore putting me overdrawn and incurring charges!!!! of £54.00 i have been advised to write to this lady with all details and request charges refunded and teh initial dd payment now my belief is they have made a payment into an account you have no control over of which you had previously requested all payments here should have ceased therefore it is their duty to help amend this situation good luck

klare

kennyc · 15 October 2006 at 1:18PM

Hi everyone....just found this thread that i think may be very simmilar to my currect issues.....

http://forums.moneysavingexpert.com/showthread.html?t=269424

can anybody tell me if WTC and/or Child Tax Credit are classed as any income-related benefit?

Thanks again!!

the_taws_family_of_7 · 15 October 2006 at 1:26PM

kennyc wrote:

sorry i forgot to mention that although the DCA (moorecroft) had recieved and cashed the postal they refused to confirm any reciept of the letters and SOA, which was strange as they were in the same envelope.
Does anyone else have / had any dealing s with this DCA? How were they with you? the last chap i spoke to was very unhelpful & rude.
Makes it understandable when people like us are in difficulties but are trying to resolve things and pay our way, start to feel like ignoring the calls and letters if this is how the advisors at these companys treat people.

Anyways thanks for looking everyone, maybe someone has had dealings like this in the past and may have words of wisdom.

Thanks Again!!

We have 3 seperate accounts in the hands of moorcroft and this has happened many times.They always managed to cash or cheques but 3/4 times would convenientley have not received the income expenditure my lesson to be learnt after that happening numerous times over 5 years was send recorded then they have no excuse.

kennyc · 15 October 2006 at 1:40PM

Cheers the taws...
it concerns me thought that an organsiation that is there to recover monies and setup agreements for repaying debts, cash a postal order but dont appear to read the letters that were wrapped around the postal order, and in the same envelope...
i realise it must take some time to enter this information on to their computers systems etc, but to refuse the existance of any such letters is beyond belief...
incidently the two people i spoke to up there on friday evening gave 2 different dates for the cashing of the postal order thurs 12th & fri 13th!

popper_2 · 16 October 2006 at 5:27PM

the_taws_family_of_7 wrote:

We have 3 seperate accounts in the hands of moorcroft and this has happened many times.They always managed to cash or cheques but 3/4 times would convenientley have not received the income expenditure my lesson to be learnt after that happening numerous times over 5 years was send recorded then they have no excuse.

to stop moorcroft or any other unreasonable DRA then read http://www.consumeractiongroup.co.uk/forum/general/27830-moorcroft.html?highlight=moorcroft and take control of your life again :j :rotfl:

in essence this letter is it
Quote:
Dear Sir or Madam: XXXX XXXX XXXX XXXX

Consumer Credit Act 1974 s78 (1) Demand

1. I require you to supply me with a true copy of the credit agreement under which this account is conducted. This is my right under your obligation to supply a copy of the agreement under the legislation contained within s.78 (1) Consumer Credit Act 1974 (s.78 (1) for running – account credit) - your obligation also extends to providing a statement of account. I enclose a £1 cheque (xxxxxx) in payment of the statutory fee.

3. You are notified that you are obliged to supply these documents, under S189 of the Consumer Credit Act 1974.

Non-compliance with my request is a criminal offence under the above Act and will result in a report being submitted to the relevant statutory authorities.

Take note at this stage, that any legal action you may contemplate will be both vigorously defended and contested.

As you are aware, a credit agreement that is not properly documented and signed by the customer is totally unenforceable under the Consumer Credit Act and therefore is a complete defence to any court claim that is issued.

Furthermore you are reminded that under s78 sub section (6) whilst the default continues you are not entitled to enforce the agreement in law

Yours faithfully

you will want to read this one too
http://www.consumeractiongroup.co.uk/forum/legalities/29293-dayglos-mission-get-his.html?highlight=moorcroft

Bank Witholding Tax Credits

Comments

Confirm your email address to Create Threads and Reply

🚀 Getting Started

Categories

Is this how you want to be seen?

Get our FREE Weekly email full of deals & guides - and it’s spam-free