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Student Loan/HMRC payment demand for their error

Hi

Today my fiance received a letter from the Student Loans Company. He finished paying his loan in full around 2 years ago.

They are saying that he 'received more credit for payments made in the tax year 2008/2009 than he actually repaid in that year.' As he is a teacher, his payments were made through his salary. They admit it was a mistake when HMRC calculated his repayments. They are saying he owes them the balance of £975. They are saying that interest will accrue at 1.5% from the date of the letter until the balance is repaid in full.

He's set up a direct debit as he can't afford a lump sum payment right now, but does anyone know if he has any recourse on this? Surely they can't add on interest for their own mistake?

Any help appreciated.

Comments

  • It's HMRC of course they can!


    Seriously look at appealing the decision and see how you get on.
  • I had a similar letter dating to 2005/06. I don't see why their error should be my responsibility. No details were given of where to write I f I didn't agree, any advice welcomed
  • Sorry only seeing these responses now.

    He did try talking to the Student Loans rep on the phone, but I suspect she's just an operator and has no clout. Not sure who we appeal through - HMRC or Student Loan Company?

    He's since received a statement saying he owes them even more in interest so he was livid. There'll be another call tomorrow.
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