Dwp loan 8yrs old?

Ravin
Ravin Posts: 3 Newbie
in Debt-free wannabe
Hi I have slowly been getting my finances sorted over the years and I am very close to being straight but I have just received a letter from a debt agency asking for repayment for a department of work and pensions loan. I started work 8 yrs and have not claimed benefits since but I don't remember getting the loan and not paying but there is a chance I could have. I have moved several times and could have easily forgotten about it. Am I just wondering what position I am in regarding paying it back. They are demanding me to pay it off within 3mnths but I can't afford £100 a month!! Can someone please help me?!?
Thanks
Rob

Comments

  • DVardysShadow
    DVardysShadow Posts: 18,949 Forumite
    Don't even think of paying it off until you have got them to prove that you do owe it. If you own up to a debt too easily whcih is not yours, they may try and pin more debts on you.

    At 8 years old, it is almost certainly statute barred - but if you don't clear it it may affect whether you get another loan. But then again, if you do pay it, your record may never be updated to show thta you cleared it
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  • Ravin
    Ravin Posts: 3 Newbie
    So it's still statute barred even tho it's owed to the dwp? What if it was my debt do I still need to pay it
    Thanks
  • MusicalLawyer
    MusicalLawyer Posts: 700 Forumite
    If it was your debt, you should pay it - morally.
    If it's statute barred it just means they cannot take you to court to recover the money. If you need a loan from them in the future, you won't get one - so Crisis Loans or anything like that. Plus if you go on benefits, they'll start taking it from you then anyway most likely.
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  • Debt-Free-Dave
    Debt-Free-Dave Posts: 31 Forumite
    The DWP use debt collectors to recover crisis loans? This cant be true surely...!?
    Starting Debt 20.03.2012 [STRIKE]£5,500[/STRIKE] £5,050
  • stclair
    stclair Posts: 6,844 Forumite
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    edited 28 March 2012 at 11:22PM
    Debt-Free-Dave wrote: »
    The DWP use debt collectors to recover crisis loans? This cant be true surely...!?

    They used to use a company called Fairfax Solicitors to recover DWP debts.

    http://www.dwp.gov.uk/other-specialists/debt-management/

    There mentioned towards the bottom of the above link along with some other possible DCAs.
    Im an ex employee RBS Group
    However Any Opinion Given On MSE Is Strictly My Own
  • Debt-Free-Dave
    Debt-Free-Dave Posts: 31 Forumite
    stclair wrote: »
    They used to use a company called Fairfax Solicitors to recover DWP debts.
    I'm a little appalled by that!












    ...Just a little
    Starting Debt 20.03.2012 [STRIKE]£5,500[/STRIKE] £5,050
  • fatbelly
    fatbelly Posts: 20,485 Forumite
    Name Dropper First Anniversary First Post Cashback Cashier
    iQor by any chance?

    They seem to think OFT guidance doesn't apply to them. I think I'd ignore it.

    It's unlikely DWP would attempt court action but, if they did, you have a statute barred defence.
  • stclair
    stclair Posts: 6,844 Forumite
    Name Dropper First Anniversary First Post
    fatbelly wrote: »
    iQor by any chance?

    They seem to think OFT guidance doesn't apply to them. I think I'd ignore it.

    It's unlikely DWP would attempt court action but, if they did, you have a statute barred defence.

    DWP debts can not become statue barred. I understand legally they can still deduct funds from any benefits that may be received in future.
    Im an ex employee RBS Group
    However Any Opinion Given On MSE Is Strictly My Own
  • fermi
    fermi Posts: 40,546 Forumite
    First Anniversary First Post Combo Breaker Intrepid Forum Explorer
    stclair wrote: »
    DWP debts can not become statue barred.

    Not true. That is a commonly repeated myth.

    Debts to DWP can be statute barred like any other.

    As you say, DWP can however continue to recover statute barred debts via deduction from benefits, as they don't have to go to court to do that.
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  • fatbelly
    fatbelly Posts: 20,485 Forumite
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    fermi wrote: »
    Not true. That is a commonly repeated myth.

    Debts to DWP can be statute barred like any other.

    As you say, DWP can however continue to recover statute barred debts via deduction from benefits, as they don't have to go to court to do that.

    This myth seems to come up a lot. This is National Debtline's take on it:
    The Department for Work and Pensions (DWP) has six years to take action through the courts to recover benefit overpayments and social fund loans. This time starts running from the date of the final decision made on the overpayment and from when the social fund loan was due to be paid. But the DWP are still allowed to make deductions from your benefit for a debt over six years old as they don't need to go to court to do this. This applies to overpayments of benefit such as Income Support, Jobseeker's Allowance, Employment and Support Allowance, Pension Credit, Housing Benefit, Council Tax Benefit and paying back social fund loans.
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