When is a debt not a debt?

fermi

UsetheFORCE wrote: »

Sorry to hijack the thread with this question,

I was just wondering how this relates to debts in Scotland, can they claw it back as legally the debt is EXTINGUISHED, would be extremely unfair if they did, just asking as hopefully someone with more knowledge will come along and answer your question.

http://www.nationaldebtline.co.uk/scotland/factsheet.php?page=23_prescription_and_limitation_act#chapter4_2

Overpayment of social security benefits

The Department for Work and Pensions (DWP) has six years to take action through the courts to recover benefit overpayments. The time starts running from the date of the decision that the overpayment was recoverable. However, if more than six years have gone by, it may still be possible to recover the overpayment from another benefit you receive as the DWP do not have to go through the courts to do this.

The usual time limit of five years applies to overpayments of Housing Benefit and Council Tax Benefit.

Appears the central government DWP debts are not not "extinguished". While locally issued ones in Scotland may be?

poppasmurf_bewdley

fermi wrote: »

Nonsense. They can be staute barred.

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=25_liability_for_debts_and_the_limitation_act

Sorry, you are correct. I was thinking that because the DWP can always claim back money, the debts were statute barred. But is it not a fact that the DWP are still allowed to make deductions from your benefit for a debt over 6 years old as they don’t need to go to court to do this. This applies to overpayments of benefits such as income support, job seekers allowance, pension credit, housing benefit, council tax benefit and paying back social fund loans.

fermi

poppasmurf_bewdley wrote: »

Sorry, you are correct. I was thinking that because the DWP can always claim back money, the debts were statute barred. But is it not a fact that the DWP are still allowed to make deductions from your benefit for a debt over 6 years old as they don’t need to go to court to do this. This applies to overpayments of benefits such as income support, job seekers allowance, pension credit, housing benefit, council tax benefit and paying back social fund loans.

No worries.

A debt being statute barred ONLY means that it can't be recovered by court action. It means no more than that.

The confusion often comes because the OFT say that it is unfair for debt collectors and companies to pursue statute barred debts in many circumstances. So people equate statute barred = unchasable.

Well, if you are regulated by the OFT that is true.

DWP are not regulated by the OFT, so are not bothered what the OFT say. And unlike most creditors, they can deduct from ongoing benefits.

It's just legal action by DWP that may be barred. No more.

Dunroamin

CantPayWontPay wrote: »

Whilst my kids are being forced to live with me and their mum until they are 25, multi nationals get tax credits and pretend they earn not a penny profit and government grins and looks other way yet they harass me 14 years after one of THEIR !!!! ups???????

!

Not unless your kids are planning to live on benefits for all those years.

eyeopener2

Dunroamin wrote: »

Not unless your kids are planning to live on benefits for all those years.

Well said Dunroamin.