17 yr old loan

don1too

Hi all,

A Social Fund loan taken out in 1993 was paid off in full.

However, now, after 17 years without contact, they claim there is an outstanding balance to be paid. They have not supplied any paperwork to substantiate their claim.

We, of course, have not kept any paperwork pertaining to this loan.

Is there some statute of limitation which would render any such balance uncollectable, even if they could supply eveidence of the outstanding balance?

stebiz

don1too wrote: »

Hi all,

A Social Fund loan taken out in 1993 was paid off in full.

However, now, after 17 years without contact, they claim there is an outstanding balance to be paid. They have not supplied any paperwork to substantiate their claim.

We, of course, have not kept any paperwork pertaining to this loan.

Is there some statute of limitation which would render any such balance uncollectable, even if they could supply eveidence of the outstanding balance?

Yes. It is statute barred after 6 years. Tell them to go and pester somebody else!!

Stebiz

fermi

Link: Factsheet | Liability for Debts and the Limitation Act (England/Wales)

Benefit Overpayments & Social Fund Loans

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, Pension Credit, Housing Benefit, Council Tax Benefit and paying back social fund loans.

don1too

Thank you stebiz & fermi, you have confirmed my expectation.