Letter from DWP Demanding

ZoeB23

Hi I do hope this is the right forum to post this in....if it isn't please someone point me in the right direction!

My husband has received a letter today from DWP demanding a payment of just over £200.00, for which he's now discovered is for a loan he took from the government 7 years ago whilst claiming job seekers, apparently there is something you can apply for to help you out in times of need (we weren't together then so this is all new to me!)
Anyway to cut a long story short they are now demanding the money because he didn't pay it back, which he was unaware he had to do. However he has since had tax rebates for being over taxed etc in his currant job (a couple of years ago) and he's had to pay overpayments of tax credits, he used to claim, back too ..... Surely DWP & HMRC are related In someway?! How have they not asked him for this payment earlier when they gave him a tax rebate back or they asked for the overpayment of tax credits back?? Would this payment not have flagged up against his name/national insurance number etc? And why has it taken them 7 years to now get in touch?
Very confused any help or guidance much appreciated.

rogerblack

DWP crisis loans and HMRC are not related.
If he came off jobseekers, and did not repay the crisis loan, then yes, he may still owe that.
Yes, they can ask him to repay it, deduct it from any DWP benefits, or attach to his earnings to get him to repay it.

Torry_Quine

Why would he not have to repay it. It was a loan.

ZoeB23

Anyone know why it takes so long for them to get in contact?

tomtontom

ZoeB23 wrote: »

Anyone know why it takes so long for them to get in contact?

Because they're short on staff and don't have time to go chasing people who should be proactive and pay what they owe. The reason for the delay is irrelevant, he should be grateful it's not a commercial lender who would have added hundreds in fees by now.

ZoeB23

Cheers for the sarcastic response, hope they've made you feel better about yourself.

[Deleted User]

https://www.nationaldebtline.org/EW/factsheets/Pages/25%20EW%20Time%20limits%20for%20recovering%20debts/Page-04.aspx

The Limitation Act says that the limitation period for benefit overpayments and social fund loans is six years.

NYM

The Limitation Act only prevents recovery of the debt through the Courts - not recovery of the debt at all.

[Deleted User]

NYM wrote: »

The Limitation Act only prevents recovery of the debt through the Courts - not recovery of the debt at all.

If the OP rejects all attempts of recovery, eventually it will end up in court, or won't it?

Brewerspride

If OP refuses to repay, DWP will recover the loan by Direct Earnings Attachment.

10pence

DWP don't have to take it to court for repayments as they will take repayments from any current or future benefit repayments.

When referring to Limitations Act, thinking a debt could be statute barred and benefits/social fund loans, consider the following taken from the fact sheet quoted previously;

The Limitation Act says that the limitation period for benefit overpayments and social fund loans is six years.

The cause of action (when the limitation period starts running) for benefit overpayments, is when a final decision is made on the overpayment. This is most likely to be a final decision by a council, the Department for Work and Pensions (DWP) or a tribunal.


For social fund loans, the cause of action is when the loan becomes due for repayment.