Pastdue Credit Solutions - HMRC

Tripledrop

Hi everyone,

My wife received a letter on July 9th from Pastdue Credit Solutions, apparently acting on behalf of, and claiming a debt of £700 owed to HMRC for Single Tax Credits. The letter doesn't give any info about the debt, but just threatens further action if not paid, giving a payment date of yesterday.

We have not claimed tax credit for around 7 or 8 years, and even then it was as a couple. The last time my wife claimed as a single person was 10, maybe 12 years ago. We have never been told about this debt, and even if she did have a debt a decade ago, we had many years of claiming where they would have taken monies owed back again I think?

Does anyone have any advice on how to handle this company, or deal with this situation?

Any advice would be appreciated

Thanks

(Please suggest a better forum if this isn't the correct one)

konark

It's a pukka company, based in Glasgow and specialising in historic debts. They do seem to have a bad reputation for chasing people for debts they don't owe. They do a lot of work for British Gas and seem to pursue people for bills long after they have left a property.

An eight -year- old debt is 'Statute -barred' meaning they can't take you to court. to enforce it. HMRC do have substantial other powers though so I don't know why they use these debt collection companies.

There was no such thing as 'single tax credits' only Working TC and ChildTC. HMRC can now pursue a joint claim with each of the couple individually, so maybe you will get a letter in your name soon. Tax credits were only introduced in 2003 so the debt can't be more than 12 years old.

I'd ignore this if I were you, they threaten further action but can't use the courts so just call their bluff. This firm are notorious for their fishing and chancing. If you want to query it do it directly to HMRC, not these parasites.

Tripledrop

Thanks for the detailed reply, that's certainly reassured me a little...

I'll take your advice and ignore them, see what happens.

I'll post again if I hear anything

Thanks again

NYM

Tripledrop wrote: »

Thanks for the detailed reply, that's certainly reassured me a little...

I'll take your advice and ignore them, see what happens.

I'll post again if I hear anything

Thanks again

Do not ignore it. Do as Blondebubbles suggested and contact the Tax Credit Helpline.

*edit*
Did you ever sort out the overpayment issues you had back in 2006 ? https://forums.moneysavingexpert.com/discussion/comment/2070655#Comment_2070655

antonic

I fear that as HMRC have passed the debt onto Pastdue , a telephone call to the Tax Credits Helpline is a wasted one because you will be advised that as the debt has been passed to Pastdue to collect, HMRC will refuse to get involved, and tell the OP to ring Pastdue.

HMRC do this with all the debts that they pass to DCA`s to collect.

Tripledrop

Yes the old claim was sorted, after requesting copies of our phone calls under dpa, they wiped the debt as the overpayment was due to them not acting on info we'd given them several times.

So I'm now getting conflicting info... Most people say to ignore them completely (also posted elsewhere and the Same there), but 1 or 2 people say the opposite?

Confused lol

NYM

Tripledrop wrote: »

Yes the old claim was sorted, after requesting copies of our phone calls under dpa, they wiped the debt as the overpayment was due to them not acting on info we'd given them several times.

So I'm now getting conflicting info... Most people say to ignore them completely (also posted elsewhere and the Same there), but 1 or 2 people say the opposite?

Confused lol

What do you think might happen if you do ignore it ?

Debts due to the Government won't just 'go away' eventually the company chasing the debt will pass it back to the original creditor and then you'll probably find you have an Attachment of Earnings or deductions from current/future benefit claims.

They don't need to go to Court to apply those.

konark

Yes HMRC don't need to go to court to get their money, they can deduct it from any benefits you receive and even order your employer to deduct it from your wage right now. So why do they pass debts to these shoddy debt collection outfits?

IF the money is really owed HMRC will get it one way or another whether you respond to or ignore the DCA.
I did suggest talking to HMRC to get to the bottom of the matter, but you still may just get fobbed of with 'according to our records...' sort of thing.

Tripledrop

Thanks again for all the responses, appreciate your suggestions.

Yes we don't claim any benefits at all, and my wife was the only one to ever claim single person tax credits, and she was claiming for years with me after her single claims, when they could've claimed back any overpayment, however I'm pretty sure there never was one to begin with.

I'll advise her to speak to hmrc, although by all accounts this isn't easy.

We will not be speaking to PDCS though! I've read some horror stories while researching this lol

JayLow_2

I paid my overpayment debt in 2013, 50% of total owed by ex wife and I, when a representative of HMRC attended my old address. I assumed that was an end to the matter.
PDCS have been chasing me for another totally irrelevant amount, and keep writing to my old address.
I've e-mailed them on several occasions quoting all reference numbers, firstly advising them I no longer live there, and secondly, (after confirming with HMRC themselves) advised them of no debt outstanding.
I've then wrote to HMRC complaints department, and they confirmed in writing there was no debt and apologised for the situation.
I've sent a copy to PDSC by recorded mail.
I haven't given them my new address as they have no reason to have it, even though I gave new address to HMRC.
If PDSC really are acting on behalf of HMRC they should acquire my new address from them?
Hence I'm suspicious of a scam, I'm no longer obliged to communicate with PDSC as I'm satisfied HMRC are happy