Old DWP loan

skintstudentnurse

Hi, I had a letter from the DWP recently about a social fund loan I had in 2000. As far as I know I paid this loan off by direct debit at the time. The DWP had written to me in 2005 asking that I pay them an outstanding £40 from the loan- I only remember that it was 2005 because it was the year I had moved into my house. In 2005 I still had bank statements proving the payments I'd made. So I sent them off to the DWP and didn't hear anything else- thought that was the end of it.

I rang the DWP when I got the recent letter & they said I had paid £160 (of a £200 loan) but there was still the £40 owing. I asked why they hadn't contacted me previously & said that ten years later was a long time to wait to chase a loan. They advised me to write to them saying I disputed that I owed the money, which I did , but have not had any response to the letter only another letter again saying I owe the money & to pay up or they will escalate it.

What else should I do?

fatbelly

My understanding is that

DWP guidance for decision makers states that recovery of a debt should be abandoned and the balance written off where the debt is:-

•under £25; or
•under £100 and at least six years have elapsed since the last repayment or deduction took place; or
•under £300 and at least ten years have elapsed since the last repayment or deduction took place; or
•over £300 and at least 20 years have elapsed since the last repayment or recovery took place.

So make it clear that the debt is disputed and invite them to consider ceasing collection and writing it off.

skintstudentnurse

Thanks for your reply

National_Debtline

Hi

If the DWP still insist on pursuing you for payment after you’ve followed fatbelly’s advice ask to see their evidence/breakdown of the debt and use their complaints process if you still disagree that you owe it.

James
@natdebtline