6 year old benefit claim. Can they do this?

dalc87

I've just opened the post to find a court claim form from the DWP for about £340 + court costs. :shocked:

About 2 months ago the DWP wrote to me to tell me that I owed them £340. Nothing else, just 'You owe us this much money. Pay IMMEDIATELY'. I wrote them a letter back saying that I was not on benefits so was surprised to hear that I owed them money. I said that I am not aware nor do I have any paper trail that I owe them money and could they confirm what the money was for and why I owed it to them as I had mentioned, I am not on benefits and the last time I was on benefits was in 2005 and I had incapacity benefit due to being off work from an accident.

They wrote back to me saying that I took out a budgeting loan for £340 in 2005 and that is what I owe them money for.

I wrote them a letter back asking them to be more specific as I had only ever had a community care grant from them whilst I was on incapacity benefit and that I was told that I didn't have to pay that back. The only other payment I had from them outside of my incapacity benefit was when my claim stalled because of a human error at their end and I was given an 'emergency loan' for about £80 which was being paid back out of my incapacity benefit. I also said that if indeed I owed this money (which I dispute) then why has it taken them almost 6 years to ask for it back?

They never wrote back to me until 6 weeks later (today) I receive this court letter.

After a long struggle (where I was told by my doctors that I may never walk pain free again and may never be able to go back to work) I willed myself to full health and got back to work and finally managed to get back on my feet with no credit card debt etc as of March this year after 4 years of struggling. Once my PPI claim goes through (or is rejected and the debt cleared by next April) I will be completely debt free. I've recently gone self-employed and have budgeted very carefully to get through the next 6 months without an income whilst my business takes off. Having struggled to get to this level of comfort so I could follow my dreams I am now finding myself in a nightmare.

Can they do this? Can they just send me court letters telling me I owe them money for something they've sent me no proof of? Can they chase me down for money I supposedly owe them from 6 years ago when they haven't mentioned it at all before?

I really can't afford to pay the money and I really can't afford to fight them and I don't have the time to deal with this and try and start up a new business. It's not come at a good time of year or a good time at all. Is there anything I can do?

Any advice much appreciated.

rogerblack

Neglecting the actual question.
Did you send your query recorded delivery, or by some other tracked means?
If not, they, or the post-office may have lost it.

If you are in England, then yes, they can wait almost 6 years, but not 6 years as the debt would dissapear.

Is this an actual letter from the court, or is it a letter from a debt collection agency.
Phone the number on the letter, and ask.

http://www.dwp.gov.uk/privacy-policy/data-protection/ - how to request all the information the DWP hold about you. (free)

kingfisherblue

I don't think DWP debts disappear after six years, as it is public money.

Lady_gaga

DWP debts never disappear and they can take it at any time from any future benefits claimed if you don't pay back money owed.

kingfisherblue

Thanks for confirming that Lady_gaga. I didn't think that they were subject to the same terms as other debts.

[Deleted User]

there is no statute of limitations on this type of debt,although usually the only thing they can do after 6 years is to take the money from any future benefits,maybe let then take you to court and ask them to prove it there?

suelees1

Firstly you cannot have been awarded a Budgeting Loan if you were only receiving IB unless you also had IS.

The Limitations Act 1980 outlines the time limit within which creditors can chase for outstanding debts. It applies when no contact has been made between the creditor and debtor within six years.

It normally begins when you last admitted owing the money or made a payment.

Should the creditor fail to maintain contact with the debtor, for a period of 6 years or more, it is possible to claim that the outstanding debt is "Statute Barred" under the conditions of the Act.

You should take advice but mine would be to complete the defence section and explain what happened and that the debt has not been proven and that you were asking for clarification and because of this you consider it to be unreasonable.

suelees1

Lady_gaga wrote: »

DWP debts never disappear and they can take it at any time from any future benefits claimed if you don't pay back money owed.

Most but not all

dalc87

rogerblack wrote: »

Neglecting the actual question.
Did you send your query recorded delivery, or by some other tracked means?

Normal post but even if it was lost I would have expected more contact than one letter and then a court letter.

rogerblack wrote: »

Is this an actual letter from the court, or is it a letter from a debt collection agency.

It's a claim form from the court. It doesn't really explain much. There was no letter, just the form saying I either admit to owing the money and pay it back or I disagree and go to court.

MissMoneypenny

dalc87 wrote: »

Can they do this? Can they just send me court letters telling me I owe them money for something they've sent me no proof of?

It sounds like they do have the proof that it was you who borrowed the money. Have you sent a recorded letter to ask for confirmation it was you who borrowed the money as you don't recall doing it? I assume you don't recall borrowing the money?

dalc87 wrote: »

Can they chase me down for money I supposedly owe them from 6 years ago when they haven't mentioned it at all before?

If it is your debt, then you asked for extra money from the taxpayer in your times of need and you were given this money. I'm not sure why you assume you don't need to pay this money back (if you did borrow it) as I assume you were grateful to be given help when you needed it?

dalc87

MissMoneypenny wrote: »

If it is your debt, then you asked for extra money from the taxpayer in your times of need and you were given this money. I'm not sure why you assume you don't need to pay this money back (if you did borrow it) as I assume you were grateful to be given help when you needed it?

I have no issue with paying back any money that I owe at all. I received a letter last year saying that I owed my old housing association a few hundred pounds in overdue rent that they had only just calculated. I checked my old paperwork and saw that I did indeed owe 3 weeks rent so I paid it.

Do you always sneer at people asking for advice when they mention the words 'benefit'?

Thanks for all of the suggestions guys, most of you have been very helpful.

I spoke to the court and the DWP directly and asked for copies of every letter they have ever sent me or any details they have on file. I cross referenced this with my letters and there was nothing in either pile that showed that I owed this money. I pointed out that I had a community care grant (which you don't have to pay back) to help me make my home more disabled friendly (I had an accident at work and was told I'd never walk properly again). The amount was for the exact same amount as the budgeting loan.

I argued that they must have made a mistake at their end as the letters they have on file is for a CCG not a BL. After much toing and froing they basically said that they can only go by what is on file and that I had no choice but to pay the money or go to court. I asked the person if there was any possibility that they had made a mistake and they said, verbatim, "It looks like we've made a mistake but to be perfectly honest with you, you won't be able to fight it as once it's in the system they consider it owed even though in your case it looks genuinely like you don't owe it at all".

Cut a long story short I have offered to pay back the money at as low as I possibly can and have stated that I intend to claim the money back once I have the time to prove I do not owe it.