Housing Benefit Overpayment-Told 5 Times

tequilamockingbird_2

Hi All,

I have been a lurker for a while (on the Debt free boards mainly-but thats another story).

I hope that you can provide advice for me on the below:

I Started a new Job back in December 2010. Up until then I was unemployed and recieving housing Benefit. I informed Manchester City Council by letter on the 5th December, advising i now had a job and no longer required Housing benefit. MCC wrote back and advised that a final payment would be made at the end of December of £63 and that my account would then be closed.

To my suprise, at the end of January MCC paid a full month's (£253) Housing benefit into my account! I rang the benefits helpline to advise that they have paid me again, and that I had a letter stating my account had been closed and the lady at the council said that i have no live account, and that it indeed was closed back in december, and advised it was not from them (Even though on my statement it says Manchester City Council payment!) and that was that.

This has happened Every month for a year now. I have put it in writing 3 times, along with evidence that THEY are still paying me and called twice. The most recent letter I recieve States:

Dear Mr XXXX,

Many thanks for your enquiry dated 12 July 2011, in Regards to your Housing Benefit payments. i can confirm that Manchester City Council are no longer paying benefit as of 17th December 2010 as per your change of circumstances. I can confirm the last payment of benefit was made on the 29th December 2010, and that your account is now closed.

Kind Regards

XXXXX

I have stored these payments in my LLoyds account, however last week, lloyds removed my overdraught facility, eating up the majority of the £2700 that was in there. My main issue is that MCC will relaise their mistake (although when i do not know as I have told them 5 times, even once providing a bank statemnt) and request i pay it back.

Apologies for the length of this post, do any of you have any advice, or should I not be worrying?

Regards

rogerblack

My first step would be to request a full copy of my council tax file under the data protection act - subject access request.
This would be as they may shred old letters - and you're getting close to the point at which this is likely to happen for your earlier letters.

Once they have been informed of the error in payment, and had a reasonable time to act on it, any subsequent overpayment may not be recoverable.

This is why you want copies of the early letters, in case they later decide an overpayment is due.
It should at least give you more time to pay it back, if you can stop recovery.

tequilamockingbird_2

Hi,

Many thanks for your reply. I have kept all correspondence, both from myself and the Council.

I have no issues in repaying, my main issue is the fact that I cannot at this time! and I have told them for the past year and nothing has been done!

Its crazy that people on here are trying to claim and cant, and I dont want to claim anymore but they wont let me stop! (or so it seems!)

Can they ask for it all back at once, considoring I have informed them of my change of circumstance numerous times, or can I set up a payment plan with them?

Also how can I make them stop paying me!

Thomas_The_Tank_Top

You have used money for which you are not entitled to service your debts.

Surely this is a criminal offence (theft)? Irrespective of the fact that you "informed" them, the money did not belong to you.

Oldernotwiser

Thomas_The_Tank_Top wrote: »

You have used money for which you are not entitled to service your debts.

Surely this is a criminal offence (theft)? Irrespective of the fact that you "informed" them, the money did not belong to you.

I wouldn't put it quite like that, although I do think you have a point.

tequilamockingbird_2

Thomas_The_Tank_Top wrote: »

You have used money for which you are not entitled to service your debts.

Surely this is a criminal offence (theft)? Irrespective of the fact that you "informed" them, the money did not belong to you.

Whilst the above is true, I am also trying to solve it, hence coming on here.

Many thanks for your informative reply.

happy_lass

they have cocked up big time. If i were you i would get down to your local citizens advice and get some help. Hindsight is a wonderful word but it would of been in your best interest to of stored the payments in a totally different account by physically taking the money out of the account and then paying it into another account. Somebody somewhere has made a major booboo. You might have a fight on your hands to prove that they were in the wrong. The council dont like to admit they are wrong at the best of times !!

parry_hotter

Thomas_The_Tank_Top wrote: »

You have used money for which you are not entitled to service your debts.

Surely this is a criminal offence (theft)? Irrespective of the fact that you "informed" them, the money did not belong to you.

Go back to La La Land!

Oldernotwiser

parry_hotter wrote: »

Go back to La La Land!

Not a helpful reply for anyone.

neverdespairgirl

I can't see how this is theft in any way. You can commit theft if money is paid into your account, you know it's not yours and you aren't entitled to it, and you spend it anyway.

In this case, however, the OP has done her best to notify the person responsible for the payment, and it appears she didn't decide to use it to pay her debts, but that rather, the bank unilaterally reduced her overdraft limit while the money was there.

OP, it must be extremely annoying for you. I'd second the CAB suggestion.

cosmic-dust

Thomas_The_Tank_Top wrote: »

neverdespairgirl, my sweet. In bold, is exactly what the OP has done!

I've had a few PM's informing me not to argue, or point out the obvious here in the Benefits part of the board. So, one is !!!!!!.

Won't be long before Tommy requires another new id