Keeping underpayment is it right???

Redshirt

Due to a mistake by the HB office I was underpaid HB, I didn't know this I just thought the amount I was getting was what I was entitled to, there was a £20 shortfall on the rent which I paid every week. I then got a letter from the HB dept to say they had made an error and I should have been getting the full amount of rent from them and therefore they owe me £780, they said this would go to the HA as although I had been paying the shortfall so the HA wasn't missing out at all the HB is paid directly to them and so it was them who the HB dept had actually not been paying the full amount to so I was to ask the HA to send it to me. They received the payment on the 9th Dec and I asked them to refund the money to me and they have refused, they said it's their policy to do this and keep the money in a special account for 2 years and if I don't go into arrears in those 2 years they will then refund the money. I've been in arrears of £600 around 5 years ago which I cleared up in 6 months and have never been in arrears since, are they allowed to do this?

rogerblack

Perhaps point out that you can request to be directly paid HB.
If you do this, you can stop paying until the overpaid amount (to the HA) is exhausted.

allen35

Unbelievable tactics by so called charities.

Do as roger says.

Redshirt

Thankyou, yes good idea I will request payment directly to me