DWP no better than a Loan Shark

Benzyl

In mid 1996 (yes Last millennium) I had a Crisis loan from the Social fund
I am certain this money was paid back to them, but I do not keep records for 13 years.

I phoned them asked them for proof that I owe this money and they sent a letter with 3 amounts on and nothing else to prove I owed it. I am now getting letters telling me that they are going to take me to court, and that it will cost me an additional £90 if they do, to avoid this I must pay the £230 they say I still owe them, or that I must prove to them that I have paid this money back.

Further investigations have found that some payments on these loans were made from my benefits but these amounts are 2 payments of £4 each time but in June 1997

I was on benefits for the most of 1996 and up to June 1997 and can not understand why their records don't show other recovered amounts.

I have been informed that the length of time that debts can go back is 6 years but I do not know how true this is.

I have a sneaking suspicion that this will be costing more to recover than the disputed amount is

I also feel disgusted in the way this department is handling this by threatening to almost double the debt, when all they have actually sent me is a letter saying that I owe and amount from 13 years ago or requiring me to prove it was paid back..

I am not sure where I stand as I certainly can not prove that these debts were recovered, but I do not want to end up with increased debts and my credit rating hit.

dmg24

Your post does not make sense. Perhaps you could read it through and just state the facts, it will make it much easier to follow.

viktory

If they are no better than a loan shark what are their interest rates?

Benzyl

dmg24 wrote: »

Your post does not make sense. Perhaps you could read it through and just state the facts, it will make it much easier to follow.

1996 took out a crisis loan, pretty sure it was recovered

2009 they threatening to send me to court saying that I have to prove that it is paid back or they will add £90 to this debt and it may cost even more

Where do I stand I thought debt recovery was 6 years not 13.

irish_eyes_r_smiling

i don't think the 6 year rule applies to recovering social monies

Benzyl

Maybe not but I am sure the money was paid back

dmg24

Are you currently in receipt of any benefits, or do you expect to be again in the future?

Benzyl

I hope not to be
I am going to try re-mortgage though hence why I am worried

BeenieCat

Wow what a screw up, i can't believe they've even discovered this now? Surely there would have been a discrepancy a lot sooner than 13 years lol.

They will have no interest in taking it to court, tell them they can have £1 a week til it's gone

Sharon87

BeenieCat wrote: »

Wow what a screw up, i can't believe they've even discovered this now? Surely there would have been a discrepancy a lot sooner than 13 years lol.

They will have no interest in taking it to court, tell them they can have £1 a week til it's gone

Don't do this as it acknowledges the debt. Send them a letter saying that after 6 years you have no obligation to pay it back (there's letters round the board you can use).

Zara33

Benefit Overpayments & Social Fund Loans

The Department of Work & Pensions (DWP) has 6 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 6 years old as they don’t need to go to court to do this. This applies to overpayments of benefits such as income support, job seekers allowance, pension credit, housing benefit, council tax benefit and paying back social fund loans.
http://www.insolvencyhelpline.co.uk/debt_factsheets/liability_for_debts_and_the_limitation_act.php