dwp debt from 8 years ago? help please...

emilyx78

Around 8 or 9 years ago when I was a single mum living on benefits, I took out a budgeting loan with the DWP, about 6 or 7 years ago when I was back in work and my now husband then boyfriend and I moved in together round about the 17th December 2004 we went into our local town and paid off the final amount of this loan, paid the final council tax bill etc...

in April 2009 I received a letter saying that the amount for the DWP loan had never been cleared and that I had to pay, I advised the person on the phone that my husband and I had paid this in cash, I couldnt be sure of the day because it was so long ago, she said that unless I could provide a receipt I was still liable for the amount, I advised her that i no longer had the receipt, that I didnt know anyone who kept cash receipts for 5 years especially if there was no reason to... she said that she would speak to a supervisor and call back if she needed to, anyway i havent heard anything until about 2 weeks ago when I recieved a letter from a company called credit solutions saying I had to pay, I got around to sending an email a couple of days ago and havent had a response, but have received a 72 hour warning before they send debt collectors.. where do I stand ? have I got any rights? do I have to pay it again?

what do I do?

Please help me...

GeorgeUK

Really not sure how your would deal with this. I know the DWP can move things along quite quickly.

The only thing that springs to mind is to request a subject access request (SAR - cost £10) from the council office where you made the payment, specifying specifically that you require a note of all payments made for the loan and also details of the final payment in December.

Hopefully they will still have it on record or be able to find it.

I would contact the nationaldebtline too though - see what they say about the DWP and what they have the power to do.

McKneff

I understand your dilemma, but i think you are going to have to pay it back without a receipt.

Possibly you could set up a payment plan?

Unless someone can come along and offer further advice.

DarkConvict

Alas the problems of cash payments.

Since the last payment was Dec 2004, the debt is not statute barred in England so they can recover the money. All paperwork should be kept for 6 years for this reason.

As above use a SAR to get the information that the loan was paid off, sadly if no proof exists you are going to have to pay again - http://forums.moneysavingexpert.com/showpost.html?p=30356293&postcount=21

property.advert

I would not be paying and I'd be onto their superiors to find out just what the hell they thought they were doing coming back after 5 years for a debt which was previously settled. I would be asking them what they did in the interim, presuming that they knew where you lived and you haven't just reappeared from outer space.

Get them on the phone, not the monkey but someone of organ grinder status. get their name, their number or telephone extension. Note the date and time of the call and make notes. If they say they will call back in an hour and have not done so, then phone them back and if not happy, go to their superiors. Get someone to take ownership of this problem.

handyman123_2

Hi Emilyx78, I found this on the benefits site origally posted by Snakeeyes21.

Tell them to take a hike.

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.

So they cant go to court over it, they can only deduct the amount from any future benefit payments you receive.

I dont know how relevant it could be to you, the OP was about a 10 year overpayment, I also agree with GeorgeUK that a SAR would be the way to go.

Lets us know how you get on.
Regards, handyman123.

emilyx78

I heard nothing from the date we moved out of our council flat and into our own home in 2004 until April last year, as I said the girl I spoke to said if there as any problem she would call back... nothing again until this letter

emilyx78

handyman123 wrote: »

Hi Emilyx78, I found this on the benefits site origally posted by Snakeeyes21.

Tell them to take a hike.

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.

So they cant go to court over it, they can only deduct the amount from any future benefit payments you receive.

I dont know how relevant it could be to you, the OP was about a 10 year overpayment, I also agree with GeorgeUK that a SAR would be the way to go.

Lets us know how you get on.
Regards, handyman123.

Hi, it was a social fund loan from about 2002, I came of benefits in the summer that year when i returned to full time work, (I paid all repayments automatically though my benefits until this point) I have been in full time employment since then... feeling very worried about them turning up or taking stuff... just need to know how to fight them and if I can...

GeorgeUK

Right now i would write to credit solutions stating that the debt is in dispute and should be handed back to the DWP. As far as you are concerned, the debt was paid in full around December 2004 in cash at the council offices and they should have a record of this.

handyman123_2

emilyx78, dont feel worried, there are some great people here, RobertoMoire (if I've got his handle right) will have some good advice on dealing with bailiffs. I dont think that it would ever get that far. Someone has made a C!!ck up and somewhere there are the records to prove it. Its just a matter of getting this problem of yours into dispute - so that you get the breathing space to get them to sort it out.

If nothing else this reply will bump you back to the top where someone better than me can advise.

Dont lose sleep over it, Regards handyman123.