Help please with a Social Fund Loan

Paul_the_Painter

If you acknowledge the debt by making a payment (even of £1!!) the debt is no longer statute barred.

Do not make the payment.

Feel free to save up the money and once you have it all together payy them off, but do not acknowlege the debt by paying anything now

fermi

Paul_the_Painter wrote: »

If you acknowledge the debt by making a payment (even of £1!!) the debt is no longer statute barred.

Not true.

Once a debt has become statute barred, no acknowledgement or payment can "unbar" it. It stays statute barred, permanently, no matter what you do.

jonesMUFCforever

fermi wrote: »

Not true.

Once a debt has become statute barred, no acknowledgement or payment can "unbar" it. It stays statute barred, permanently, no matter what you do.

Then why pay anything?

jonty07

This morning I have been informed by a DWP employee who works within the Social Fund team/dept, that outstanding monies from all previous (regardless of time), future and existing Social Fund payments are to be repaid either by deductions from 'benefit' awards, or cash collection for those who are not in receipt of any type of benefit award.

When asked if cash collection is not proving to be successful, whether that be by voluntary agreement, or via the debt recovery team, what then? The reply was that the 'outstanding monies' from the Social Fund payment would remain on record (unless Government write any applicable amounts off), and that these monies would be eventually collected as deductions from a persons State Pension, or earlier if there is a new claim for a benefit award.

Therefore, I have come to the conclusion that any monies outstanding from the Social Fund will always be repayable regardless of the time period from when the monies were issued, or from the last point of contact from the DWP regarding the payments from the Social Fund. Unless of course the DWP issue debt collection via court proceedings, which then a person can argue the case.....

It would be great if my conclusion is wrong, and there is a way to argue the case with the DWP where no court proceedings, or debt collection correspondence is being undertaken.

Apples2

jonty07 wrote: »

It would be great if my conclusion is wrong, and there is a way to argue the case with the DWP where no court proceedings, or debt collection correspondence is being undertaken.

Technicalities aside, why do you have such an aversion to (at some point in your life) repaying the money which was lent to you to help you in your hour of need?

fermi

jonty07 wrote: »

Therefore, I have come to the conclusion that any monies outstanding from the Social Fund will always be repayable regardless of the time period from when the monies were issued, or from the last point of contact from the DWP regarding the payments from the Social Fund. Unless of course the DWP issue debt collection via court proceedings, which then a person can argue the case.....

That is exactly the case.

A debt being statute barred just means that legal action is barred. Nothing else.

DWP can recover by any other legitimate means for as long as they want.

An external debt collector may be barred from pursuing, as they have the additional constraints of OFT guidelines on how they operate.

DWP acting directly do not have to pay any attention to the OFT.

jonty07

Apples2 wrote: »

Technicalities aside, why do you have such an aversion to (at some point in your life) repaying the money which was lent to you to help you in your hour of need?

Personally I don't. However, if it is possible, and there is a legal reason to argue a case, then surely it's a persons prerogative to argue that case.