Tax credit debt

dlites

Hi i was overpaid tax credits by £671.90. When i got the notification i arranged a direct debit payments online over 12 months as directed on the letter. I got HMRC notification of direct debits in September and payments began October. I have not missed any payments and have not cancelled the direct debit set up, but have today received a debt collection letter for outstanding tax credit debt. i have rung the number on the HMRC direct debit confirmation and the woman on the phone said i hadn't arranged it with them. i told her i had followed the letters instructions and had confirmation. She said but i didnt phone and arranged it with tax credits. she said i have to ring the debt collection agency and can cancel my direct debit. I told her this was ridiculous and they should explain it better in their letters as it does not specify you have to ring wtc to arrange it. she put the phone down on me.

What i want to know is this correct, surely if you have entered into an agreement they can't then pass it onto a debt collection agency when you have adhered to the agreement. I also want to know if this will show on my credit report. Look forward to any replies

NYM

Could you just send a copy of the confirmation from HMRC and the payment references of the D/D to the Debt Collection agents?

dlites

yes i could hadn't thought of that just so upset they have sent the debt to debt collections agency when there is a payment plan in force

Guest101

So what? A debt collector is a bloke with a phone. Absolutely no power whatsoever. Bin the letter and be done with it.


Never, ever speak to a debt collector on the phone.


No it wont show on your credit report.


The person you spoke to on the phone is an idiot. You're paying the debt, doesn't matter if they arranged it or not.

NYM

Do NOT bin it! The collection of these debts is not the same as 'regular' debts. It never goes away, it doesn't become Statute Barred. They are acting on behalf of HMRC. They haven't been sold to the Collection agency.

Guest101

NYM wrote: »

Do NOT bin it! The collection of these debts is not the same as 'regular' debts. It never goes away, it doesn't become Statute Barred. They are acting on behalf of HMRC. They haven't been sold to the Collection agency.

That's irrelevant when the OP is paying direct to HMRC (and can prove it)

NYM

Guest101 wrote: »

That's irrelevant when the OP is paying direct to HMRC (and can prove it)

It's not irrelevant. They need to deal with it by providing the Collection agents with the proof they've arranged it directly with HMRC to pay by instalments, and show those payments are being met.

Ignoring it isn't an option.

Darksparkle

Personally I would write to the DCA confirming payment is already being made directly to HMRC and you expect no further contact from them.

dlites

Hi thanks for comments i have emailed them copy of dd agreement and copies of payments going from bank account. Just got to wait for their reply now

NYM

dlites wrote: »

Hi thanks for comments i have emailed them copy of dd agreement and copies of payments going from bank account. Just got to wait for their reply now

Hopefully that's the last you'll hear from them.

Guest101

NYM wrote: »

It's not irrelevant. They need to deal with it by providing the Collection agents with the proof they've arranged it directly with HMRC to pay by instalments, and show those payments are being met.

Ignoring it isn't an option.

Im sorry but I disagree totally.


The Op needs to do nothing. The agents, are just that, agents. Not principals. they can do nothing to the OP. except report back saying that there has been no reply.


If they owned the debt they could of course then persue her as principal in the courts