Advice regarding income related benefit....

sistafromanothermista

I'll try and keep it brief and outline the facts....


10 years ago, my sister took out a budgeting loan and a crisis loan (amounting to around £400) which was being paid back directly out of her benefits each week (income support)

So, 10 years later they have sent a letter saying she still owes it as they stopped taking the payments (for unknown reasons)


Is this debt still enforceable after all this time?
She has no records of amounts paid back so can neither confirm or deny if what they are saying is the truth.

rogerblack

They cannot take her to court for it.
They can deduct it from any benefits - including eventually her state pension.
Is it possible her IS claim was closed before the debt was paid off?

sistafromanothermista

rogerblack wrote: »

They cannot take her to court for it.
They can deduct it from any benefits - including eventually her state pension.
Is it possible her IS claim was closed before the debt was paid off?

This is a possibility although she thinks they may have cocked it up when they changed the way benefits were paid (from giro to direct bank payments)
They have said it has been passed to a debt collection department. Obviously she is worried about bailiffs etc.

Forgot to add, the only benefit she is in receipt of now is WTC and they have said they cannot deduct from this as it's a different sort of benefit.

nannytone_2

there is nothing they can do at the moment apart from sending nasty letters.
but if at any time in the future, she claims benefit ( including state pension) they can, and will deduct the outstanding amount.

unless she can prove that she doesnt owe this money, she'd be better off making a repayment plan with DWP

sistafromanothermista

Does anyone know if DWP debts can be statute barred?

sammyjammy

sistafromanothermista wrote: »

Does anyone know if DWP debts can be statute barred?

As has previously been said they cannot take you to court/get a CCJ etc but they can deduct from future benefits for as many years as necessary.