DWP Overpayment

SteveMetal · 12 July 2010 at 9:56PM

My wife has received a letter from DWP Debt management about an overpayment for Carer's Allowance which she owes which dates back to January - March 2002.

The letter is asking her to pay back the money immediately and giving her the option to contact them to discuss repayment terms. The letter ends in:
What happens next
If we do not hear from you by 03/08/2010 we will consider taking further action to recover this money from you, therefore please do not ignore this letter.

Now I am aware that they cannot take court action to recover this money due to the debt being over 6 years old, and the only way they can get the money is by deducting it from benefits (which she currently does not receive).

I am guessing that going by the wording in the last paragraph they are aware of the fact that they cannot enforce this debt and are hoping she will just pay up.

She is not even convinced that she owe's this money as she thought she had finished claming this benefit back in October 2001, but she is not certain on this.

Are there any template letters which I post off to them requesting information of the dates and payments for which she has supposedly received these overpayments, and also requesting proof that she owes this debt. And due to the age of it would it be worth sending a letter stating the fact that it is over 6 years old and has become unenforceable in law. Again, are there any template letters for this?

I've seen the Statue Barred template letters but i'm guessing that the wording on this letter would not be suitable for the DWP.

Any advice would be greatly appreciated.

Thanks.

alwaysonthego_2 · 12 July 2010 at 10:40PM

Try www.nationaldebtline.co.uk for template letters.

You should send a letter, recorded delivery, saying that your wife does not acknowledge the debt and would like to proof of how they have worked out the debt. As you have correctly said if she does owe this money, although they cannot enforce it throgh the courts if it is statued barred, they can take it out of her benefits.

alwaysonthego_2 · 12 July 2010 at 10:52PM

http://www.nationaldebtline.co.uk/england_wales/temp/7154_91011.pdf

SteveMetal · 12 July 2010 at 11:22PM

Thanks for the link, that is the standard Statue Barred letter, is it best just to send that letter off or is it worth me asking them to prove she owes this money by providing copies of the supposed overpayments? I'm guessing and hoping that they would no longer have these documents.

SteveMetal · 12 July 2010 at 11:32PM

Also does the Statue Barred letter apply to the DWP, as they are a bit different to the usual Law firms. I know the 6 year rule still applies, but is it still classed as Statue Barred?

alwaysonthego_2 · 13 July 2010 at 7:40AM

Statued Barred basically means that they cannot take you to court to pursue it, so yes providing that she has not been in contact with them within the 8 years then it will be SB.

I am going to move this thread to DFW to see if you get any more response.

munchings-n-crunchings · 13 July 2010 at 8:46AM

Even though the over payment is not recoverable through the courts, you are correct in the fact is is, and will be recoverable from any benefit.
It may be the case, that your wife is not currently in receipt of benefit, but later in life, it could be deducted from any pension entitlement, which is a vulnerable time to be having a debt recovered.

Try and get clarification of how the overpayment came about, and to make a payment arrangement if the money is owed.

Regards
Munchie

beanielou · 13 July 2010 at 9:13AM

Actually DWP have quite far reaching powers to recover money owed to them.

SteveMetal · 13 July 2010 at 2:13PM

I shall send a letter off, not acknowledging the debt, requesting information on the exact dates of this debt and to provide detailed information on how this debt came about, including proof of any overpayments which were received.

Not sure if they will be able to find this information due to the age of it, but maybe that's the best route to take for now.

And if they can not provide this information then surely they cannot chase a debt which they have not proof of.

Ames · 13 July 2010 at 5:31PM

DWP debts don't become statute barred to the best of my knowledge. Debt to the government is a whole different kettle of fish to commercial debt.

But all is not lost.

How was the debt incurred? If your wife was at fault, ie didn't tell them of a change in circumstances, then it will need to be repaid.

If the DWP was at fault, ie they were given all the information they needed at the right time etc, then all they can do is ask for it back.

You probably need someone like CAB or DIAL to help fight it though, it's a really tough area to get results from.

Sorry it's not better news.

crabyducky · 13 July 2010 at 11:06PM

I was under the impression that DWP could take overpayments out of your wage packet if you wernt on benefits.

My brother in law had an overpayment from them which he neve paid back due to the time scale and the fact he didn believe he was overpayed, then when he went to claim benefits after being made disabled he found he was not able to claim as it was on his file as benefit fraud.

DWP Overpayment

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