DWP debt help

ScarlettTiger

When I was on income support, I had a budgeting loan that was being repaid through my money, I came off IS in 2010, and to be honest forgot about the loan, and never heard from the DWP until I got a letter yesterday asking for the money back, which seems to be more than what I was allowed to take out for a loan, and the letter doesn't specify what the debt is for.
I work part time and found the direct earnings assessment table and my monthly earnings are below the threshold.
Will this mean they will then send debt collectors instead?
Or if I arrange a payment plan with them before this stage, what sort of monthly payments will they expect from me as I have no spare cash to pay more out.

Any advice will be gratefully received.
Thank you

andyfromotley

What does the letter say?

You should not repay anything untill you are clear that you actually owe money, but i would be surprised if the letter didnt tell you this.

Give National Debtline a bell, they are very knowlegable and should be able to advise you.

National_Debtline

Hi ScarlettTiger,


If more than 6 years have passed since your last payment in 2010 then this may be statute barred. If this is the case then it would prevent them trying to chase you for the budgeting loan through the county court (and is unlikely they will use debt collectors). Unfortunately though, they would reserve the right to take a deductions from your earnings/ benefit claims in the future (there is no time limit for this type of enforcement action).


You can write to them to make an offer of what you can afford to repay just to get the matter dealt with but if you are unsure whether the balance is correct you should send them a letter asking for more details. Be careful how you word it though - they may argue it as a written acknowledgement, and if it has been less than 6 years since your last payment in 2010 you could restart the limitations clock and allow the creditor to sue you now. You could send the prove it letter - https://forums.moneysavingexpert.com/discussion/2607247


Laura
@natdebtline

RuthnJasper

I was in the same position last year Scarlett. After receiving the letter, I telephoned the number it gave. They were very helpful and I arranged to pay them back at £10 per month.


They will want to avoid sending the bailiffs if they can, as that'll cost a lot of money and hassle - but don't be afraid to call them and offer to repay in instalments.


Best wishes to you.

fatbelly

National_Debtline wrote: »

If more than 6 years have passed since your last payment in 2010 then this may be statute barred. If this is the case then it would prevent them trying to chase you for the budgeting loan through the county court (and is unlikely they will use debt collectors).

RuthnJasper wrote: »

They will want to avoid sending the bailiffs if they can, as that'll cost a lot of money and hassle - but don't be afraid to call them and offer to repay in instalments.

They can only send bailiffs on a defaulted county court judgement, and they can't get that if the debt is statute barred.

However, they are likely to send it to debt collectors:

If you can’t pay back the money

DWP may pass your case to an independent debt collector if you haven’t paid back the money you owe.

You’ll get a letter from one of the following suppliers saying that it’s acting on behalf of DWP:
Advantis
Akinika
CCS Collect
Credit Solutions
DLC (Direct Legal and Collections)
drydensfairfax Solicitors
Fredricksons
Moorcroft
Shakespeare

Let us know if they do, because there are FCA rules about debt collectors chasing statute barred debts

Roughly how much is the debt?

ScarlettTiger

I came off IS in september 2010, so I guess technically it's not quite 6 years. I know I probably had the budgeting loan to pay back, but I really cannot remember how much.
I don't want to go down the debt collector route.
So if I deal with them direct will I have to do a means test?

sourcrates

ScarlettTiger wrote: »

I came off IS in september 2010, so I guess technically it's not quite 6 years. I know I probably had the budgeting loan to pay back, but I really cannot remember how much.
I don't want to go down the debt collector route.
So if I deal with them direct will I have to do a means test?

It depends how much you owe, what your income/expenditure is, and how long it would take you to repay the loan, at an amount you can afford.

Realistically the DWP will get its money back, if you don't repay it, they will deduct it from any future benefits you may be entitled to, up to and including your state pension.

"Means tested" are words the DWP use, ask for a statement of the loan account, then make them an offer to pay it back at a rate you can afford, include a statement of affairs with your monthly income/expenditure etc, showing what you can afford to pay, that's it.


People always get debt collectors and Bailiffs confused with one another, Fatbelly explains the difference above.

fatbelly

If you can get it to the 6-year point, it limits their options and gives you ammunition against debt collectors:

FCA sourcebook:

"A firm must not continue to demand payment from a customer after the customer has stated that he will not be paying the debt because it is statute barred." 7.15.8

If you can afford to pay it back in a reasonable timescale, then you should. I was working on the 'I have no spare cash' principle in your first post.

For now, as you said that the amount seems too much anyway, why not follow Laura from Nat debtline's suggestion and send a prove-it letter? See what they come back with

If it's less than £100 owing, there might be another angle

ScarlettTiger

The amount is £698.50. So it will take a while to pay back. Plus they've given me untl 23rd March to contact them, before they take the DEA or debt collector route

I currently receive working tax credits, would they deduct it from that? I know they are different departments, but is it possible as I'm below the DEA threshold with my wages?

fatbelly

Send a prove-it - there are lots of arguments you could put to them once you have the facts

I am not aware of a mechanism for reclaiming SF debt from tax credits.

You are below the threshold for a DEA (you say) and have nothing to fear from DCAs - they can't do anything.

ScarlettTiger

If I write to them , do I simply ask for more information on what I owe the money for?