Paying back debt from 6 years ago? Jobcentre loan

Newlywed_08

I recieved a job centre loan in 2008, then I started a new job and completly forgot about it have moved houses since and been married then and 2 months ago I got a letter to my new address and my new name, saying i owe £226 I phoned up and she told me why so I set up direct debit to pay £15 a month back
but I've read somewhere about you not having to pay it back after 6 years? this debt isn't on my credit report?

p.s sorry if this is in wrong section!

forgotmyname

Someone will be probably along in the morning that knows the ins and outs of this question. But im sure there are some exceptions to the 6 year rule.

Benefits maybe one of them?

MancBrel

6 years without contact would preclude the courts option to recover this debt. However they have written to you now, in the 6th year. They've done this to avoid timing out. So the clock starts again. Government departments are being cut to the bone right now, so they will pursue where they see revenue due to them.

Edit. Just re-read my post. Didnt make it clear - if you respond in writing, or make a payment then the clock starts again. Even so, this was taxpayers money and you haven't suggested that you cannot afford £15 a month, so you should do the right thing and pay up.

antonic

Also they can recover it from any future benefits you might claim or become entitled to.

fatbelly

Newlywed_08 wrote: »

I recieved a job centre loan in 2008, then I started a new job and completly forgot about it have moved houses since and been married then and 2 months ago I got a letter to my new address and my new name, saying i owe £226 I phoned up and she told me why so I set up direct debit to pay £15 a month back
but I've read somewhere about you not having to pay it back after 6 years? this debt isn't on my credit report?

p.s sorry if this is in wrong section!

If the £15 is affordable, I'd stick with that.

A social fund loan would become unenforceable by court action if there was a six-year period when you did not acknowledge it by payment or in writing. It's no different from other debts in that regard. Phone calls do not count as acknowledgement and neither do their actions.

However ... the DWP does not need to take court action as they have two other routes. They can make direct deduction from other state benefits, including state pension. And they can now do a Direct Earnings Attachment if you work for an employer with more than 10 employees.

Newlywed_08

Thanks for your replies, I originally offered to pay £10 a month back because I only working relief due to childcare, and sometimes can work 40 hours in month sometimes 140 they said because I'm working they can't accept any less then £15 a month and expect £10 a month of people on benefits only

I offered £10 even though I could pay more and would pay more just would like a lower payment incase one month something happens to my car and we need to pay to get that fixed

HappyMJ

Newlywed_08 wrote: »

Thanks for your replies, I originally offered to pay £10 a month back because I only working relief due to childcare, and sometimes can work 40 hours in month sometimes 140 they said because I'm working they can't accept any less then £15 a month and expect £10 a month of people on benefits only

I offered £10 even though I could pay more and would pay more just would like a lower payment incase one month something happens to my car and we need to pay to get that fixed

You'll find it hard to get out of if you earn enough to not be entitled to any benefits yet want to pay as little as £10 per month.

If you claim child tax credits then that is classed as an earnings related benefit and you should tell them that then you can pay the £10 per month amount you are proposing...

However, on the other hand you have a car. They can take the car to pay the debt and you can walk and get the bus.