dwp debt

borderlakland

approx 9 yrs ago i recieved a crisis loan from dwp (through job centre) and was paying it back by deductions from social security payments. i stopped receiving ss payments at least 8 yrs ago due to csa payments being higher (their advice)I completly forgot about loan and am sure they never contacted me for repayment. latter end of last yr they contacted me regarding outstanding loan and repayments, and new letter recieved today.. does the statute of limitations (6yrs i believe) still apply to dwp debts

moohound

I believe they can recover the money by deducting it from most forms of benefit payments except for some disability payments even if it is over 6 years old. They cannot make you pay it back at a rate you cannot afford though.

Different laws apply to it, not consumer credit laws.

I think they can only recover the money by making deductions from benefits rather than getting you to make payments.

Are you still getting any benefits ?

It's like it's SB if you are no longer on benefits and not SB if you still are on benefits, they can't chase you through the courts, or use DCAs or make you pay, but they can make deductions from benefits and it's policy to recover the money by this means.

This is from what I have researched myself, I am no way an expert, someone else might be along to clarify.

fatbelly

That is correct. Threats of court action would be empty ones but they can still deduct from certain benefits including ultimately State Pension.

For 6-10 year old debts there is guidance that they should not pursue balances less than £100 but I assume yours is more than that.

The DWP do employ certain debt collectors, and they are bound by OFT guidance,including guidance on statute barred debt.

fermi

Yes, court action is barred.

As said, they can still deduct from ongoing benefits.

Since this year they can also go for a "direct earnings attachment" that acts like an attachment of earnings order but does not involve the courts. As that doesn't involve action through the courts, they may still be able to do that. Not heard of that happening though? Perhaps fatbelly can comment?

fatbelly

I still learn a lot from this site. DEAs were introduced on 6 April 2013 but are only being tested on a pilot basis at the moment.

Nicely explained here:

fermi

fatbelly wrote: »

I still learn a lot from this site. DEAs were introduced on 6 April 2013 but are only being tested on a pilot basis at the moment.

Nicely explained here:

Aha! Thanks for that link.

borderlakland

thanks for answering my question, i still do receive child tax credit so presume they could make deductions from them. am i correct in thinking i should write back to them, ask for all the details of the loan ie dates etc and of any repayments made so i can double check my dates are correct. then i can write again to confirm this. the most recent letter states they will pass the debt over to a private company

pauletruth

no dont bother just see what happens next

borderlakland

if i do leave it and they do pass the debt over to a private company, how do i deal with them? they want me to contact them by the 11 of this month to arrange payments

borderlakland

does anyone else agree i should not contact them? if they do pass it over to another company what do i do then?

cheers

pauletruth

they wont they will just take it from any future benefits. if you have the spare cash pay.