Finished DRO now tax credits are taking payment out

bell123321

Hi,

Hoping someone can offer some advice.

In October 2013 myself and husband did a DRO which finished this October. It included an over payment of tax credits from 2012-2013 that we were paying off in instalments but couldn't afford to pay after I lost my job (that's why we got the DRO).

When the DRO got granted we contact tax credits and they stopped demands for payments.

Fast forward today and our weekly tax credit payment is 30% less then it should be. We call up and after being on the phone for nearly 4 hours to various people we find out they are taking the re-payment out of our current reward without any notice and even with it being included in the DRO. We have spoken to the insolvency services who granted the DRO who have also sent HMRC another email to say we have been subject to the DRO and completed the momentum period and should be discharged from these debts.

However they are having none of it and are still insisting on taking the money out weekly at 30% of our reward that we can not afford.

This afternoon we have sent off a recorded letter along with proof of the DRO and this debt being included. For the time being we have tried ringing back to ask if they can take lower amounts until they have sorted it out with our letter, however nobody is saying they can help us or lower our amounts until they have looked at it which may take several weeks.

Any help on what else we can do?

debt_doctor

Hi,


Complain to your MP.
MPs have caseworkers to handle such things.


DD

UserJong_2

Did you both do one each? Or did you do a loint DRO togetehr?

Did you pay £90 or £180?

longtermplanner

It's not possible to have a 'joint DRO'

bell123321

UserJong wrote: »

Did you both do one each? Or did you do a loint DRO togetehr?

Did you pay £90 or £180?

We both did one each paid £90 each

fermi

debt_doctor wrote: »

Hi,


Complain to your MP.
MPs have caseworkers to handle such things.


DD

Yes, probably a good idea from previous examples.

HMRC seem to be in denial about these debts being written off, and that level of intervention may be the only thing that gets through to someone there with any clue.

bell123321

Thanks for the suggestions I didn't think about writing to MP

UserJong_2

Surely you can just send proof of DRO to Tax credits and insist that the debt was included so it has been written off. This is the end of the story.

Is this not the same procedure with any other creditors trying to reamfirm the debt after a DRO or bankruptcy?

National_Debtline

UserJong wrote: »

Surely you can just send proof of DRO to Tax credits and insist that the debt was included so it has been written off. This is the end of the story.

Is this not the same procedure with any other creditors trying to reamfirm the debt after a DRO or bankruptcy?

In a perfect world that ought to suffice. In this case, however, OP states that they have already got the Insolvency Service to contact HMRC directly, but to no avail it seems.

OP - I echo the suggestion that you ask your MP to intervene; good luck resolving this matter.

Dennis
@natdebtline

fermi

Also problem with HMRC is that they can deduct the money at source, so if they refuse to listen they have you over a barrel and you can't stop them taking it. Plus unlike normal companies you might owe that are regulated by various bodies and ombudsman, the same does not apply very much to HMRC so your avenues of recorse and complaint are limited as well.

bell123321

Just an update: They received our copy of our DRO on the 17th but have not received any response in regards to that.

Today we received a letter in response to our request for them not to take 30% of our reward per week in the mean time whilst they got our DRO. They have decided that a rate of 30% is appropriate (Even though our income last year was only 15k and less this year).

Banging our head against a break wall. Debt was included in our DRO that has recently finished received no notice they were going to take out from our current reward notice debt relates to Apr 2012-Apr 2013 and was included in our DRO October 2013. Debating weather to ring them again but last time was on phone for 4 hours. Insolvency services have also emailed Tax credits two weeks ago to remind them debt was included in our DRO's.