Department of work and pensions - Loan enquiry

Darrenr

Hi Folks,

Im looking for some advice on the above.

Before meeting me, my partner took out a budgeting loan from the DWP in 2003/4.

When we met (2004) we combined finances and payed of the loan (so we thought) - The loan is still only in my partners name.

A couple of weeks ago they got in touch, telling saying that infact there is about £150 still owed. They have sent out direct debit forms and alike, along with a letter saying that if we dont contact them or pay it back, that court action will be taken to recover the outstanding amount.
They have said they have tried to contact us previously about this, although we are quite sure we havnt had any letters. We moved to our current address about 4 years ago, and this is the first communication we have seen.

Can anyone offer any advice on what action we should take, do we have to pay it straight back, or do we set up a direct debit as they have said, or is there some kind of time lapse that may mean the debt is written off?

I appreciate your advice, and just to be sure, we are not trying to get out of paying it, however it does seem that they have taken a very long time to get in touch.

Many Thanks

Daz

jonesMUFCforever

You do not have to agree to pay by direct debit - you could set up a standing order. If they can prove the debt you will have to repay as statute of limitations do not apply to DWP loans. Whether they have or have not tried to get in touch is irrelevant. Best to get a repayment plan agreed as soon as possible IMO.

DevCoder

The debt might be statute barred from going to court but the DWP have the right to take any owing monies from any benefit payment as they don't need to go to court for this.

This deduction "owed" will last as long as they need to get the funds (i.e. it can be deducted at any point that you are liable for benefits etc).

Darrenr

Hi All,

I will set up a standing order if that is the case. We no longer claim any benefits, we have managed to haul ourselves above the benefits levels these days (only just though)

Thanks for your advice

Daz

jonesMUFCforever

Darrenr wrote: »

Hi All,

I will set up a standing order if that is the case. We no longer claim any benefits, we have managed to haul ourselves above the benefits levels these days (only just though)

Thanks for your advice

Daz

To do that you will need to ask them for their bank sort code and account number to set the S/O up - don't forget to include your reference number in the narrative/detail part.