Crisis Loan Appeal - Help Urgently Wanted!

snoop1charlie · 18 November 2008 at 2:01PM

Hi,

I recently applied for a crisis loan, but today received a letter from the DWP to say that my application was unsuccessful.

The reason I applied for a crisis loan was for help with paying my rent arrears, which have unavoidably occurred. Basically when I moved in to my current rented house on the 31st May 2008 I was informed by the landlord that he would accept what is known as a paper bond, and that I would only have to find the one month's rent in advance. This worked out great for me as I wouldn't have been able to afford both the advance rent and bond deposit, as I am only in receipt of incapacity benefit. Therefore I signed the tenancy agreement on this understanding, as I desperately needed somewhere to live. However the landlord changed his mind at the last minute (after the tenancy agreement was signed), and I had to find both the one month's rent in advance and the bond deposit. I had no option but to pay the one month's rent in advance, and to pay the bond deposit a month later at the end of June 08. It therefore left me unable to pay the rent for July 08. BTW I receive housing benefit but I still have to find a shortfall of £210 per month to pay. It is therefore the month of July 08 which has caused the arrears and has continued throughout the tenancy. On a number of occasions I have offered to pay off the arrears at an affordable weekly rate, but each time my proposal has been rejected by the landlord. The landlord is now demanding repayment of the rent arrears in full, otherwise he said that I will be evicted at the end of the month (when the tenancy ends).

After I have paid this month's rent I will again be in the same position, with one month's rent arrears still owing. I am unable to afford to pay effectively two lots of rent, which is why I applied for the crisis loan.

My 9 year old daughter also lives with me, and the current situation is causing a lot of distress and worry for me. I already suffer from acute anxiety and depression, so I am at my wits end at the moment. The reason given for not giving me a crisis loan was 'we are not allowed to pay for what you have asked for'. I was honest with how my situation has arisen, and I would say that homelessness was an emergency, so I have exasperated at the DWP's decision. I understand that I have the right to appeal within 28 days, but this is no good to me as the deadline is effectively the end of November.. which is only 12 days away! Therefore is there any way that my appeal could be expedited? I wouldn't even know where to start with an appeal, so what should be included in such a letter? Maybe if I reduce the amount I am looking to borrow, do you think that the DWP would look at my application more favourably? Any reasonable amount of money would help if I at least show my landlord that I am making the effort to raise the cash required to pay off my rent arrears.

Apologies for the length of this post but I am in a rather desperate situation now, and not quite sure what to do for the best. I can't believe that the DWP do not view homelesness as an emergency! So I would be very very grateful for any advice or help on what to do.

Best Regards,

Simon

Fran · 18 November 2008 at 2:09PM

I think forget the Crisis Loan. See Shelter website

What are crisis loans for?

You may be able to get a crisis loan if you need money because of an emergency or disaster. You may be able to get one if, for example, there has been a fire in your home. It could help you pay for essential things that you can't afford, such as food or clothing, or:
rent in advance if you have to move
charges for board and lodging or rent in a hostel
minor repairs and improvements

Most other housing costs are excluded.

.

It seems like you could have applied when needing rent in advance but not for arrears.

Ring Shelter as you are potentially homeless.

Shelter Cymru with the phone number - 0845 075 5005 "For housing advice and support services".

Fran · 18 November 2008 at 2:12PM

Just to add why I say forget the Crisis Loan, the problem is you have already paid out this money so I'm pretty sure you have no chance of getting it after the event. Shelter has local advisors and will be able to tell you the best course of action.

applecharlotte · 18 November 2008 at 7:50PM

To apply for a crisis loan for living expenses - pay your rent arrears with your benefit money, then apply for a crisis loan for living expenses (food, gas and electric). They won't refuse money for that if you have already spent your money. You won't get a crisis loan for rent arrears, that's not what it's for. It sounds like you may have applied for a budgeting loan rather than a crisis loan. This would be for rent in advance but not unfortunately rent arrears.

Why are you only getting IB? If you have a child living with you you should also be getting IS and CTC.

Fran · 18 November 2008 at 9:12PM

applecharlotte wrote: »

They won't refuse money for that if you have already spent your money.

I wouldn't guarantee that, you can't just spend the money then expect them to replace it. You have to eat and feed your child so don't go down this route (spending and hoping they will pay) until you have checked it out with a benefits advisor.

applecharlotte · 18 November 2008 at 9:31PM

I take crisis loan applications all day every day. They can't give crisis loans for rent arrears, but they do give them for "spent money" ie. if you've spent your benefit money on rent arrears and now need money for food, gas and electric (the 3 main items you need to get you out of immediate crisis).

Fran · 18 November 2008 at 9:33PM

applecharlotte,

How much would be reasonable for Simon to ask for?

tink_the_stink · 18 November 2008 at 9:39PM

Long time since I did Crisis Loans but didn't pay Bonds then & positive still don't pay.

Please do not spend your benefits on paying off your arrears (as suggested) as this isn't a crisis you have put yourself in that position & again they won't help.

Sounds to me like your landlord wants you out, knows the position your in & that you can't pay, might be best to cut your losses & find somewhere else, yes you'll still owe your landlord but sure they'll then be happy to get it back weekly.

Try find somewhere where you don't have to pay top up because its not met by housing benefit or you'll end up in same position again & again.

Also can then apply for a loan for rent in advance, just get letter from landlord stating how much you need, know you've still got find a bond but sure all landlords aren't as bad as the one your with at moment

applecharlotte · 18 November 2008 at 9:40PM

He can basically ask for enough to last him until he next receives any money. So he probably won't get enough to pay all his rent arrears, but if he gets his benefit on a monday, says he's spent it all on rent arrears the same day, he can ask for the same amount again to last him until he next gets a payment, he'll need to itemise what he wants it for. As you said before he needs to feed his child, so whether or not they think he is being irresponsible by not feeding his child first they need to give him more so they don't go hungry. It sounds like an easy option but don't forget that a crisis loan is repayable.

But again although it doesnt help in the short term it sounds like he should be claiming is and ctc aswell.

zappster1966 · 18 November 2008 at 10:47PM

I'm surprised at the advice you're offering, applecharlotte, especially because you're an employee of DWP. This is one of those times when I despair about the advice being given out by Jobcentre Plus/Social Fund staff.

You're basically suggesting the OP spends the money they need for food, power etc to pay debt, with no guarantee they'll even qualify for a Crisis Loan. I assume you're not familiar with the SF Loan history of the OP. There could be half a hundred reasons why they won't qualify for a Crisis Loan. They could already be maxed out on SF Loans & up to their limit. Office policy might be such that they'll initially refuse IB only claimants from qualifying because there are other sources of credit available.

But the main reason they won't qualify, imho, is that they're deliberately depriving themselves of money needed for food, power etc in the full knowledge they'll end up in a crisis of their own making whilst there are other avenues available which should be investigated first.

And to encourage folks to borrow to pay debt, albeit interest free, is just plain daft. Recurring Crisis Loan applications for the same thing ... spent money ... will actually be held against the OP if they ever have to apply again.

You haven't mentioned that Crisis Loans won't even make up the amount used up by spending every penny of the IB on this debt ... Crisis Loans only pay at 75% of the IS scale rate. The OP could spend £208 IB on these arrears and only end up with 75% of £120 in return by way of a Crisis Loan.

Mad idea. Mad.

Crisis Loan Appeal - Help Urgently Wanted!

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