DWP Debt Management Letter

Sagz_2

OH has received a DWP Debt Management letter, again.
Last time (a few months back) he spoke to them and told them that as the debt was over 6 years old he would not be repaying now and was aware that re-payments would be taken if he ever received payments from them in the future.

The latest letter is telling him not to ignore the letter and to contact them to stop any further action being taken. They mention taking money directly from earnings, recovering money through the courts, refering the case to a private company for repayment collection - which may incur additional costs.

OH is happy to 'file' the letter but I tend to worry...... am I right in thinking that as the debt is over 6 years old (well over) they can not enforce repayment now?

Thank you for any advice you can give.

PippaGirl_2

I didn't think DWP/HMRC debt was able to be statute barred? I thought the debt was always live. How was the debt acrued? Was it failure to inform a change of circumstances or an incorrect claim? Or their mistake?

Sagz_2

Thanks for the reply PippaGirl. He failed to tell them of a change and was overpaid for a couple of months.

emsywoo123

Here's an idea......you know the money was not his. You had it and spent it or whatever, I don't know your circumstances. Why not just pay it back. You could make an arrangement to pay over a long period of time, a nominal sum, all at once, whatever.

Why would you be trying to ignore this debt?

This site is about moneysaving, not advocating anything else....

Sagz_2

A little judgemental emsywoo, but thank you for taking the time to reply. I neither had the money, spent it or intend to pay it back.

OH is aware that he will have to repay the debt, and intends to if/when he ever claims money again. I just wanted to check that he has his facts right and won't end up having to repay more in the long-term by failing to address the situation now.

(personally, I would offer to pay back over a long period but he does not want to do that)

Horseunderwater

I think that if they applied to a court for what is called a court order to effect repayment, then it would be statute barred (over 6 years) but if your OH made any further benefit claims they could invoke deductions from that benefit without going to a court of law and as it is all linked via NI number it is going to get hard to ignore these debts - they could go back as far as they like - our problems arise because unless you have kept all bank statements and benefit sign on books etc you will not know what happened and when. Effectively no proof.

PippaGirl_2

Sagz wrote: »

Thanks for the reply PippaGirl. He failed to tell them of a change and was overpaid for a couple of months.

In that case it was fraudulently claimed and is definitely not statute barred. It wouldn't even be covered by bankruptcy and will need to be paid back. I would advise he starts paying back now as much as he can afford per week.

paulmapp8306

Wrong forum really - however a couple of points.

Firstly the 6 year statute barred thing is NOT from the date of the debt, but from the last written acknowledgement of the debt. If he admitted owing the money in the last letter, it may well have re-started the 6 years if it would otherwise be statute barred.

Secondly, I dont think this is statute barred. that is for debts - ie money you borrow and fail to repay. This is not the case here - its not a loan, its a benefit that was wrongly claimed or given. They are not statute barred and legal action could be sort.

Sagz_2

Just in case anyone searches and stumbles across this thread, this is the advice CAB gave me and it's also here on the Payplan.com website:

Benefit Overpayments

The Department of Work & Pensions (DWP) can chase debts after 6 years without going to court. They reclaim the overpayments by deducting them from current benefits.

Nyfle

paulmapp8306 wrote: »

Secondly, I dont think this is statute barred. that is for debts - ie money you borrow and fail to repay. This is not the case here - its not a loan, its a benefit that was wrongly claimed or given. They are not statute barred and legal action could be sort.

No, the Limitation Act 1980 (as amended) does not only apply to debts.

It's also worth noting that, in this instance, the clock started ticking not from when the overpayment occurred but from when, ahem, the customer in question was first notified that the overpayment existed.

[Deleted User]

in the long run the best thing he can do is make an offer to pay at a reasonable amount every month,otherwise this could go on for years and the payments eventually taken from state pension if he doesnt repay or claim benefits before then,if he is working now then this is an ideal time to repay