Crisis Loan want repayments less than 3 months after loan!?

portofcall

I have been having some issues with the crisis loan people at DWP recently. Firstly they tried to take money from my JSA that was subject to a Bankrupsty Order from 2 years ago! I spoke with their BR department and they told me that it was their mistake and they would look into my case with a fine tooth comb and not to worry.

So today, less than 3 months after I took out a Crisis Loans for £45, i recieved a letter statign that they are going to take out £8.52 per week until this loan is paid off!

What is their game? I thought a maximum period of 104 weeks was allowed to pay off a loan! To ask for it to be repaid so soon after the actual loan seems very very odd.

Any suggestions please on how I handle this.

I really can't afford nearly £18 off my £145 JSA so soon!

midnight_express

what did you think the word loan meant ? what did the original paperwork say?

portofcall

midnight_express wrote: »

what did you think the word loan meant ? what did the original paperwork say?

Thanks for the unhelpful smartass reply.

I understand the meaning of the word loan thank you!

With a Crisis Loan they allow up to 104 weeks for the repayment to be repaid. When I have taken out a loan with them in the past, I usually pay it back a year later. They should allow enough time to have past for the client to have a stable enough time to then make the repayment. 3 months is not enough.

I think that I rattled their cage when I made an inquiry about a loan which should not have been paid back because of BR. Thus find it a coincidence that they are now asking for a loan to be repaid so soon after it was applied for!

Helpful replies only thanks.

pmlindyloo

If you feel that you cannot pay back this crisis loan at the rate they have said then you need to give them a call and ask for a different repayment plan.

See here for how it is worked out:

http://www.dwp.gov.uk/publications/specialist-guides/technical-guidance/sb16-a-guide-to-the-social/crisis-loans/#loancl

missapril75

portofcall wrote: »

So today, less than 3 months after I took out a Crisis Loans for £45, i recieved a letter statign that they are going to take out £8.52 per week until this loan is paid off!

That would be what you'd agreed having accepted the loan.

I thought a maximum period of 104 weeks was allowed to pay off a loan!

That is the period that any current debt is supposed to be repaid within, it's not a two year repayment holiday.

Whatever a debt is, a weekly repayment rate is calculated so as the debt is repaid within that time scale.

To ask for it to be repaid so soon after the actual loan seems very very odd.

It is actually normal. Where a repayment of a loan is delayed is because a previous loan is being repaid. They are only allowed to recover one at a time.

I really can't afford nearly £18 off my £145 JSA so soon!

The loan was allowed because you agreed the repayment terms.

If you can't afford it you shouldn't have agreed.

However, if circumstances are worse now than when you agreed, that is a reason to ask them to reduce the original amount agreed.

But remember, they only make a loan because you agree to repay currently, not from some unidentified date in the future.

miduck

portofcall wrote: »

Thanks for the unhelpful smartass reply.

I understand the meaning of the word loan thank you!

With a Crisis Loan they allow up to 104 weeks for the repayment to be repaid. When I have taken out a loan with them in the past, I usually pay it back a year later. They should allow enough time to have past for the client to have a stable enough time to then make the repayment. 3 months is not enough.

I think that I rattled their cage when I made an inquiry about a loan which should not have been paid back because of BR. Thus find it a coincidence that they are now asking for a loan to be repaid so soon after it was applied for!

Helpful replies only thanks.

Given that you are aware that loans have to be repaid, and you failed to repay your previous one(s), can you not understand why they wish for you to start repayments quickly?

FBaby

Surely if it is a 'crisis' loan, three months to get out of a crisis situation is quite reasonable?

Benny_Fit

You clearly didn't deserve the loan.

"The amount of the loan is £XXXX and that'll mean you pay back £XXXX per week once the other Social fund debts have been cleared. Do you accept the loan amount, the repayment terms and the Social Fund Terms and Conditions?"

If you said YES - then be quiet. Fool.

Morlock

It may be possible to extend the expected repayment request or reduce the amount you pay each week. Check to see if you qualify for a percentage reduction.

http://www.dwp.gov.uk/publications/specialist-guides/technical-guidance/sb16-a-guide-to-the-social/crisis-loans/#loancl

Or

"If you cannot make the repayments at the rate originally agreed we may be able to help, for example by extending the repayment period to reduce your payments. You should contact your Jobcentre Plus office for advice. If you are repaying your Crisis Loan to the Department’s Debt Management organisation, you should contact them."

Morlock

Benny_Fit wrote: »

...be quiet. Fool.

You should heed your own advice.