Do DWP class a loan as savings?

dmg24

Are you sure that the debts were not in joint names, or perhaps secured on your property? If not, I would be putting in a complaint to CAB.

zagfles

dmg24 wrote: »

Are you sure that the debts were not in joint names, or perhaps secured on your property? If not, I would be putting in a complaint to CAB.

The CAB were probably right. If the property was owned, or part owned, by the husband then it'll form part of his estate, and any creditor can claim against the estate whether or not the debt is secured against the property (securing against the property just means that lender is first in the queue, but other lenders can still claim against it).

zagfles

flamehair wrote: »

I recently had my Income Support stopped with no explaination. When I inquired they told me my case had gone to Investigations dept because I had excess funds.
The only thing I can think of is just after my husband died & before claiming Income support, I had to take out a loan to pay off massive debts that he left me, backdated mortgage arrears & payment for the roof to be fixed.
I put the loan straight into a savings account
I am an OCD sufferer & manic depressive therefore I cannot work & someone told me I could claim Income Support. Due to the nature of my illness I was unable to fill out the claim form & somebody else did it for me, all I did was sign it.
My question is, do the DWP class a loan as savings.
I am sick with worry. I appreciate any help.

They can do, but if all you did was use it to pay off other debts and essential maintenance to your property they usually wouldn't. I'd ask them to review the decision as it seems harsh.

zagfles

Loopy_Girl wrote: »

All you can be is honest with them.

They may view it that you had alot of money, 'gave' it away and then clamed benefits - after all, the debts could have been paid off with small amounts every month rather than paying them all off in one chunk.

They weren't her debts, they were her husband's, and the creditors were making a claim on the estate. Sounds like she had a choice of settling from the estate (and so losing her house) or taking out a loan. It's very harsh for the DWP to regard this loan as available capital - it's not like she spent it on a world cruise - she spent it to keep her home and do essential repairs.

Newly_retired

Normally you have one month to challenge a benefit decision. Ask them to review it.
Creditors can chase a debt against the deceased's estate.

nannytone_2

how did you manage to get a loan if you dont work?

cheepskate_2

flamehair wrote: »

When I took out the loan I put it straight into a savings account & because there were so many debts I paid them through my bank account as & when it was needed,

If they were all paid through your bank account , then there is proof that you paid money out. From this it should show it was companies i.e credit cards etc. As it is your bank you should be able to get this info, where it went to whom etc.
It will be up to you to prove that it serviced these debts

not too sure if you put the money into a savings account , then paid debs from your own bank account, rather than it comming from the savings account

paddedjohn

why not use the 6k you have left to reduce your debt

FBaby

The issue might not be the loan and what it was intented to, but the fact that there is some money left that becomes capital. I don't understand why OP would have not start paying the debts with whatever savings she said she had, since she didn't have to pay everything at once, and then take a loan for the amount of what was left rather than a huge loan with £6000 remaining in savings.