Direct Earnings Attachment

debt_doctor

Hi All,


Not strictly bankruptcy related, but BRs could be affected prior to their BR by........


Direct Earnings Attachment. (DEA) - the government have given themselves the power to deduct monies said to be owed direct from earnings WITHOUT having to go to court first. This is allowed by the Welfare Reform Act, and has amended the Limitations Act so that Statute Barred debts can still be recovered in this way.
The DEA can be used to collect any local or national government debt so Tax Credits, JSA, Housing and council tax benefits, LA rent arrears and other arrears can take up to 20% of net income.
The regulations state that this must be a last resort when other methods of collection have failed, but we are now starting to see these (law since April 2013).
Still in early stages of challenging these so will keep you informed.....................


DD

National_Debtline

Hi DD

Will follow this thread with interest. Are you coming across many instances of them so far?

Dennis @NDL

debt_doctor

National_Debtline_representative wrote: »

Hi DD

Will follow this thread with interest. Are you coming across many instances of them so far?

Dennis @NDL

Hi,


This is the second one we have seen - the first one was a very small debt and soon collected, so client did not want to challenge.


The second one is a large debt and the amount collected is causing real hardship.


I am going to start by offering a reasonable amount via a CFS (financial statement) but if that doesn't work will make formal complaint, appeal as necessary and aim to get to Local Government Ombudsman if needs be.
Client has other debts and may well consider DRO to get rid of the deduction if they have to. They meet the criteria.


DD

SkintSuzy

Regarding DEA'S, the DWP have contacted my employer directly without any warning regarding a tax credit overpayment from years ago. The bill is £1245. I work in a sensitive job requiring enhanced disclosure and am suicidal with fear that I will lose this job as people are getting laid off for any reason. I am terrified. I have already been evicted and managed to obtain this job in January and find a tiny flat for myself and my 15 year old son, I thought I was starting to see the light at the end of my debt tunnel and am in touch with Step-change. But what am I going to do now? I am at my wit's end.

debt_doctor

SkintSuzy wrote: »

Regarding DEA'S, the DWP have contacted my employer directly without any warning regarding a tax credit overpayment from years ago. The bill is £1245. I work in a sensitive job requiring enhanced disclosure and am suicidal with fear that I will lose this job as people are getting laid off for any reason. I am terrified. I have already been evicted and managed to obtain this job in January and find a tiny flat for myself and my 15 year old son, I thought I was starting to see the light at the end of my debt tunnel and am in touch with Step-change. But what am I going to do now? I am at my wit's end.

has the IR tried other methods to collect the debt and failed? Has there been previous arrangements which you didn't keep up with?
DEA's (according to the legislation) are suppossed to be a last result when all other attempts at recovery have failed.

DD

SkintSuzy

Thank you for your reply, yes I have had previous correspondence regarding this child tax credit overpayment, but it came from a debt recovery agency and I cannot understand why it had only just been sent to me, as the child in question is now 25. I since changed address and this has come as a shock. I would pay this in 3-4 months if this would prevent them from contacting my employer as I am able to work overtime, but this is almost certainly going to cost me my job. It doesn't help that you have to phone an 0345 number and hold on for ages and get nowhere. I am so worried. If I contact them would there be any chance at all that they would listen to me? The DEA was sent to my employer on 2nd June, but I have only got the letter yesterday.

Beenie

When you say 'sent to your employer' by DWP, it probably means the wages/salary department.

Unless someone there goes running to HR or your boss, how will anyone know about this attachment?

I'd keep shtum if I were you.

SkintSuzy

Thank you for your reply - it has gone to the salary payments team who have nothing to do with my actual work, so I am hoping that you are right. It's not a crime that they worked my tax credit out wrong, and it was at a time when there was a big rumpus over the DWP getting loads of tax credits wrong. I think I will have to keep my fingers and toes crossed. Thank you, I really do appreciate your help.

whyme67

I was on income support in 2002, a single parent & had just been diagnosed with a condition that was seriously affecting my health so my boyfriend use to stay over when I was bad & we were planning on moving in together. I was then contacted by the JCP who cautioned me saying they'd had a report we were living together. I explained everything to them & they said theyd be in touch with a decision. I heard nothing more & shortly afterwards I gained full time employment & haven't been on benefits since. My health has deteriorated due the condition & other additional conditions but still I temain employed & suffer wage loss due to hospitalisation & ill health. Last year I had a letter from DWP saying I owe nearly 6k for the above & would order a DEA unless I paid up. I contacted them to provide evidence but all they sent was dates when theyd paid me. I contacted them again saying this wasn't what I was after as I agreed I had the money but disagreed that I wasn't entitled to it. I heard nothing till this week when they have sent me a letter saying theyd sent DEA instructions to my employer. My employer has confirmed this. After lots of calls & talks with IS they have agreed to look into this curther but surely they should have done this 1st. If they do stop this money it will be around £200 a month which will leave me struggling to work & pay for essentials. Doesanyone know any of the official guidelines for these supposed debts?

zuluwarrior31

DD, if the debt has been sold, they have retained some of the monies lost, so surely they cannot do a DEA if they have already profited from the sale of the debt?

zuluwarrior31

Hope this puts your mind at rest a bit more Skintsuzie

The Department for Work and Pensions cannot recover welfare benefit payments through the courts where the claimant is not at fault, the Supreme Court has ruled.
The court heard that between March 2006 and February 2007 the DWP wrote to over 65,000 claimants telling them it could sue them in the county court if they did not return over payments made as a result of administrative errors.
The benefits involved included income support, incapacity benefit, disability living allowance, jobseekers’ allowance and child benefit. Over £4m was recovered by the department in the financial year 2007-08.
Delivering the leading judgment in The Child Poverty Action Group v Secretary of State for Work and Pensions [2010] UKSC 54, Lord Brown said it was common ground that the secretary of state was entitled to recover overpayments resulting from misrepresentation or non-disclosure.

You could request the information you submitted regarding the claim and ask for any correspondence you have sent along with copies that they have sent you to fight your corner Whyme67