student loan and housing benifit problem

marty5

About 4 years ago whilst I was single and living alone I was in receipt of housing benefit and I started a collage course and received a student loan. Now the council want me to pay over £3000 as overpaid housing benefit. This figure was presented as such with no breakdown or workings out.

I have always disputed this as grossly unfair as I have to pay back the student loan with interest and they want me to pay them back this large figure as well, making me pay twice for receiving a student loan. They have ignored my disputes and have refused to take this matter to court at my request and have instead instructed debt collectors without a court order.

I wrote to the debt collection agency after receiving there leter explaining that the debt is disputed and they wrote back saying they my take me to court to seize property. I was glad that the matter would finally go before a court but nothing happened and a few months later they pushed a notice of attendance through the door. This stated that they re-attendance may occur without further notice. I feel this is in breach of The Office of Fair Trading - the debt collection guidance 2.12f: visiting or threatening to visit debtors without prior agreement when the debt is deadlocked or disputed.

I currently live with my partner and 3 children (soon to be 4), who I got together with after the so called debt had been incurred. The property at the address is a mix of joint owned, partner owned and mine, and I have read that my partner could provide a sworn statement saying the property is hers as I have provided everything that was solely mine for her and the children. Our current address is different to that which I lived when single.

I have made a formal complaint to the council which receipt has been acknowledged and I have been notified that it has been passed on to the housing benefit section. I also wrote that the next step will be writing to the local government ombudsman.

I feel that if you have a dispute over a debt that the council should not have authority to by pass the court and instruct bailiffs.

I also feel that as loans are not considered as income by the council then why student loans should be considered as such as they also incur interest and have to be paid back.

Any thoughts and advice on this matter would be appreciated.

Marisco

Hi Marty, the DWP are a law unto themselves!:mad: Did you inform them of your change of circumstance i.e student loan? I'm not very well up on student loans, but would they consider this as different to a "normal" loan? But I'm sure someone will be along to advise, who knows the score.

Fiddlestick

marty5 wrote: »

About 4 years ago whilst I was single and living alone I was in receipt of housing benefit and I started a collage course and received a student loan. Now the council want me to pay over £3000 as overpaid housing benefit. This figure was presented as such with no breakdown or workings out.

I have always disputed this as grossly unfair as I have to pay back the student loan with interest and they want me to pay them back this large figure as well, making me pay twice for receiving a student loan. They have ignored my disputes and have refused to take this matter to court at my request and have instead instructed debt collectors without a court order.

Did you notify the council that you started the college course?

Did this make you ineligible for Housing Benefit?

If so, did you continue to claim it?

Nobody is treating you unfairly or making you pay twice for anything, but if you made a claim whilst ineligible then I'm afraid you need to pay it back.

Fiddlestick

Marisco wrote: »

Hi Marty, the DWP are a law unto themselves!:mad: Did you inform them of your change of circumstance i.e student loan? I'm not very well up on student loans, but would they consider this as different to a "normal" loan? But I'm sure someone will be along to advise, who knows the score.

Full time students are not eligible to claim Housing Benefit, regardless of income.

podperson

Unfortunately can't offer much advice but totally agree with you on the council regarding student loans as income.
My partner gets a student loan and this apparently pushes us over the threshold for housing benefit so we no longer get any. It completely baffles me - if I had to go out and get a loan from a bank would they class this as income as well!! It is not like we have the money spare to spend, it goes on his uni travel, materials and expenses -which is what I always thought it was meant to be for not living expenses. He was actually relucant to get the loan out in the first place since we are already in enough debt but when I mentioned this to the housing benefit people they said that even if he didn't take it they would still act like he had since the option was there for him :mad:

Marisco

Thanks for that Fiddlestick, I didn't know that:o Seems a bit harsh mind, considering the grant is not very much! That is probably what has happened to Marty then, if he didn't know. But I do know from experience that they'll pursue it - dogs and bone come to mind:mad: Even if it's not your fault, you have to pay it back. To be honest Marty, if you were claiming it and a full time student, I'd save myself the aggravation and come to a payment agreement with them.

Nessynoo

Most students pay their own rent with their student loan. The loans are used for general living costs whilst studying.

DarkConvict

marty5 made a mistake and did not inform them he was now a full time student. This is classed as a change in employment, and must be reported to the benifits office.

Basically, he was not eligible for the benefit, as such any benefit paid must be paid back. Since this was not an administrative error on there part it will need to be repaid, it won't get reduced or written off.
I had a similar issue with HMRC over a tax issue as a student, I sought advice, filled in forms as asked, but ti was filled in wrong. HMRC like DWP are indeed a law onto themselves, regardless of who makes the mistake they will want the overpayment repaid.

Debt collectors cannot size goods even though they do threaten to do it. Are you sure these are debt collectors not bailiffs?

You should get in touch with the DWP and state that they failed to provide a breakdown or reasoning to the amount owed, even though you asked several times. Since they issued debt collectors you had no choice but to seek independent advice on this matter.
The advice given was this money is owed, as you were not eligible due to been a full time student. Since you now know this, you would like to enter into a repayment plan.
You have looked at your income/expenditure (provide proof - http://www.makesenseofcards.com/soacalc.html or http://www.nationaldebtline.co.uk/england_wales/budget_sheet.php?country=england_wales) and can repay at £xx per month.

Really that is all you can do. With a debt owed to the DWP you can't get benefits since they will be swallowed by the overpayment

marty5

the course was under 21 hours making it parttime if that makes any difference?

the company is Philips Specialist Bailiff & debt Recovery service.... www philipscollectionservices org uk

I'm already paying coucil tax arrears so I could offer them half of that payment

With council tax they need to take you to court when you owe but seems they wont with overpaid houing benifit. I would have thought they would need too aswell.

Also I thought local councils were seperate from DWP.