Crisis Loan Repayments.

cit_k

Does anyone know the rules for crisis loan repayments,

What is the maximum percentage they can take from your benefit?
What percentage(s) are they meant to take, the DWP says 12 percent of your weekly benefit amount.

I think they are taking 12 percent of fortnightly amount, and then doubling it so Im charged 24 percent of my total income a fortnight, surely thats not correct?

(ie, they say 12 percent of weekly income, surely your weekly income is half of your fortnightly payment) so overall you should be charged 12 percent of your total amount, if the charges come out each fortnight.)

Hope that makes sense?

Mara69

According to the DWP website:

There are 3 standard rates of repayment which normally apply. The rate in your case will depend on financial commitments.

The rates are equivalent to 12 per cent, 10 per cent and 5 per cent of your weekly

• Income Support available income (and including Child Benefit and Child Tax Credit where appropriate)
• or Jobseeker’s Allowance available income (and including Child Benefit and Child Tax Credit where appropriate)
• or Employment and Support Allowance available income ( and including Child Benefit and Child Tax Credit where appropriate)
• or Pension Credit (and including Child Benefit and Child Tax Credit where appropriate)

excluding any housing costs.

Repayment at 12 per cent rate


If you have no other debts to repay, you will be expected to pay an amount equal to 12 per cent of your weekly

• Income Support available income (and including Child Benefit and Child Tax Credit where appropriate)
• or Jobseeker’s Allowance available income (and including Child Benefit and Child Tax Credit where appropriate)
• or Employment and Support Allowance available income ( and including Child Benefit and Child Tax Credit where appropriate)
• or Pension Credit (and including Child Benefit and Child Tax Credit where appropriate)

excluding any housing costs.

Repayment at 10 per cent rate


If you have some other payments to make from your benefit, such as rent or fuel arrears, the repayment rate may be lowered to 10 per cent of your weekly

• Income Support available income (and including Child Benefit and Child Tax Credit where appropriate)
• or Jobseeker’s Allowance available income (and including Child Benefit and Child Tax Credit where appropriate)
• or Employment and Support Allowance available income ( and including Child Benefit and Child Tax Credit where appropriate)
• or Pension Credit (and including Child Benefit and Child Tax Credit where appropriate)

excluding any housing costs.

Repayment at 5 per cent rate


If your commitments are larger (for example, you have higher payments to make from your benefit or are repaying several personal debts) the repayment rate will normally be 5 per cent of your weekly

• Income Support available income (and including Child Benefit and Child Tax Credit where appropriate)
• or Jobseeker’s Allowance available income (and including Child Benefit and Child Tax Credit where appropriate)
• or Employment and Support Allowance available income ( and including Child Benefit and Child Tax Credit where appropriate)
• or Pension Credit (and including Child Benefit and Child Tax Credit where appropriate)

excluding any housing costs.

The total debt should normally be paid back within 104 weeks (2 years).

cit_k

Yes, but that does not answer the question asked, ie weekly income is it defined as half of a fortnightly amount? ie, 12 percent of what you get a fortnight, or 24 percent because they charge you weekly?

salau2

12% of a weekly amount is the same as 12% of a fortnight. Just benefit is calculated as a weekly amount. Give the benefits department a call and discuss it. If you can't afford repayments ask for it to be reduced explaining why i.e. other debts. If necessary send a Financial Statement to them showing hardship.