DWP Loan

Legacy_user

My friend got a crisis loan from the social over ten years ago when he was single.He now has a partner who he live with and she gets carers allowance (CA) for his son.The DWP are now taking payments off his partner's CA for this loan.

Are the DWP entitled to take payments from his partner's CA when my friend took out the loan in his name when he was single?

System

Does anyone know if this is right?

pmlindyloo

Can't find any legislation about this. Nearest I can find is that the partner can be held liable for a HB debt but would have to be living as part the household at the time the overpayment occurred.

What I suggest your friend does is write to them and explain that partner was not living as part of the household when the debt occurred (if this is true) and, therefore, under what legislation are they allowed to deduct the debt from her CA?

Could just be that they don't know she wasn't part of the household when the overpayment occurred.

essex_girl

I received a demand for a crisis loan taken out over 3 years ago. I was just wondering if they can still ask for it back after all this time? I cannot remember this and asked them for proof and they quoted an amount to me. They said i could ring and ask for a copy from a separate dept, namely the Social Fund but that they are about to put in place an attachment of earnings via my workplace.

thanks in advance for any comments/advice on this.

midnight_express

Yes they can ask for it, the length of time makes no difference The clue is in the word loan.

stevemLS

essex_girl wrote: »

I received a demand for a crisis loan taken out over 3 years ago. I was just wondering if they can still ask for it back after all this time? I cannot remember this and asked them for proof and they quoted an amount to me. They said i could ring and ask for a copy from a separate dept, namely the Social Fund but that they are about to put in place an attachment of earnings via my workplace.

thanks in advance for any comments/advice on this.

Yes, they are.

If you look at threads on here you will see loans being recovered from 15 years and more ago,

McKneff

If he is that bothered, tell him to repay the money from his own income then the problem will go away.


He should have repaid it a long time ago

AsknAnswer2

Yes to both. The relevant legislation is the Social Security Administration Act.

benniebert

I've just read this post and two others that are all basically asking the same thing. Why are people only getting hot under the collar when the DWP come knocking for a debt to be repaid. Seems to me that people duck under the radar for years hoping that it would go away - it's only the government, they have plenty of money. Surely these debts should have been repaid asap. If I had lent somebody money I would be demanding repayment no matter how many years ago it had happened. And the Statute of Limitation would not be stopping me!!

LONDONBOY123

Do NOT pay it and just ignore all their demands as its statute barred after 6 years. So even if it goes to court it will be thrown out.

tomtontom

LONDONBOY123 wrote: »

Do NOT pay it and just ignore all their demands as its statute barred after 6 years. So even if it goes to court it will be thrown out.

The DWP has alternative means of pursuing monies owed past the six year court bar.

Worrying advice from a wannabe accountant.