Overpayment but Tax Credits say there isn't???

kelloggs36

My husband and I receive the grand total of £10 per week child tax credits and have done for some time. We merrily received the money into our bank until a couple of years ago, we changed our account and then there was a problem; they could not pay the money into our bank and sent us giros instead.

Fast forward until June (ish) when hubby checked the bank account and found that tax credits had put 3 payments in our account - totalling over £1.6k. I immediately rang them to say that we aren't owed the money, and explained about the bank. I asked if it was because the computer problem had been sorted which allowed the money to be paid into our account now, and the woman agreed that is what it was. I asked then how I should pay it back. She said to wait until the renewal had been finalised, and then I would get a letter of overpayment. They would either recover the money over time by not paying us anything this year and next, or they may ask for it all back as a lump sum. I said I would put the money in an account and wait for the letter.

I renew my claim and have received nothing. I therefore rang them last week to chase this up, and was told that the award was finalised back in July and there was no overpayment showing on the system at all - she said that if there was one, it would definately show!!! She said she would send another award notice as I had still not received mine which was sent out in July.

I would rather they stopped paying me and let us use the lump sum as it is much more convenient to have it there but at the moment I can't do anything with it - except earn interest (a pittance, more's the pity!!)

When will they finally realise and write and ask for it back???? I can't have it sit there forever, can I? They won't allow me to pay it back without them first asking - if that makes sense?

alwaysonthego_2

I would put the money in an high interest account and don't touch it.

Ask TC if they could send you out a statement of your award and check the details to make sure they haven't accidently changed your income etc.

LizzieS_2

It looks like they've paid you 3 full years of £545pa. Perhaps their computer is not recognising the giro payments? Your award notice should say what is due for the year, what has been paid and what is left to pay.

Check the awards for the last few years - it could also be a payment you were previously due to but the computer did not pay out at the correct time.

LeeSouthEast

Definitely pop it in a high interest account to cream off the interest. Keep it liquid, and don't spend it. They'll likely be back for it in 3 months to a year.

sp1987

As people have said, whilst they do not seem to want it back from you make a little back from having it in interest. Even if it only makes a tenner, free money is free money!

kelloggs36

LizzieS wrote: »

It looks like they've paid you 3 full years of £545pa. Perhaps their computer is not recognising the giro payments? Your award notice should say what is due for the year, what has been paid and what is left to pay.

Check the awards for the last few years - it could also be a payment you were previously due to but the computer did not pay out at the correct time.

That's what I am hoping, but I still haven't received an award notice - third time of asking!!