Old DSS Loan

tazandtommy

Don't know if I'v put this in the right place.

When I was about 19 I got a loan when I was on the dole for about £300, which I had to pay back , they took small payments off my dole money as payment. I got a job soon after and moved out of the area so my dole stopped and so did the repayments, I have never made a payment since.

Anyway, about 2 years ago a friend of mine went to the citizens advices about some of her det, the gent told her as one of her old dets (council tax) had not had a payment made on it in five years it was invalid and would be taken off (which should againset her name).

Does anyone know any thing about this rule, sorry if im unclear. I not sure how to word the question!!:o

healy

The advice given to your friend was wrong. There is limit of 6 years on most debts if you have not been in contact with the company but this does not apply to DSS/DWP loans etc.

fluffyscruffy

They dont write it off...as soon as you claim benefit it will trigger social fund to recover the money from your benefit....even if they have to wait til your a pensioner!

singlehouseholder

TBH, if you were to make a claim, it would probably still be on the computer system. There would have been letters issued, for the rest of the loan, so called because you need to pay it back. The Social Fund have a budget allocated to them, if you take, you have to put back, its interest free after all, so really, it should be paid back.....
I wouldn't build your hopes that the debt has been written off- chances are, it hasn't. Sorry if this wasn't what you wanted to read.

Astaroth

Under normal laws of limitations a company has 6 years to recover debts but the OFT recommends that the debt can still be recovered after the normal statute barring if the debt company can show they have been "continuously" chasing you. As healy says though DWP and the government in general do not have the same constrants applied that private companies/ individuals do.

fluffyscruffy

I work on Sf...if the debt is more than 6 years old it does not get referred to legal branch but it does stay on the computer system and as soon as you or your partner claims benefit it prompts us to restart recovery no matter how old the loan is.

essexhoney

the only person i know that has ever got away with paying back a loan from social fund was a very long time ago before they had computer systems and it was all done with good old pen and paper :rotfl:
the local DWP's offices caught fire and it and all its records went up in flames. Meaning they had no records of what was owed to them by anyone.
In this day and age with everything run by computer systems it is highly unlikely that will happen and that you will have no choice but to pay it back.
If/when in the future either you or your partner claim benefits they will automatically track the debt back to you and you will have to start repaying it again.
Though i would have thought if you were working currently would it not be better to contact them and arrange some sort of payment arrangment and pay it back now, rather than if you need to use the benefits system (which then your obvioulsy really going to be needing the money) to have it all rather than taking it off you to repay an old debt?