Bankruptcy & The DWP

Lioness_Twinkletoes

Hi

Please can you advise on a situation that has arisen? I'm asking on behalf of a client.

They had an overpayment of Income Support sometime in 2002/2003. Declared themselves bankrupt in Feb 2004. The DWP overpayment was included on the petition. My client was discharged about a year later.

The DWP have tried to recover the debt a couple of times over the last 12 years and recently have tried again. Timeline as follows:

The DWP sent a letter regarding the overpayment dated 23 March 2016. My client immediately called them and advised them of the bankruptcy, giving all the details (number of petition, date, name of OR, name of the court). The advisor refused to note them down so my client sent them all the documents, with a covering letter. This was sent on 4 April with a deadline of 16 April.

Yesterday, my client received a letter advising that the DWP had written to their employer asking for the debt to be deducted directly from their wages. My client called the DWP to be told:

• They hadn't received the documents
• They intended to continue with the direct deductions
• They did not intend to call the OR to confirm
• They would not allow my client to fax or e-mail the documents.

My client intends sending the bankruptcy papers again via recorded delivery (signed for) but is desperately worried out about the direct deductions as the DWP have refused to halt recovery. What if the paperwork 'goes missing' again?

There is also the embarrassment of my client's employer being told that their employee owes this money when they absolutely do not!

Is there anything my client can do/complain to?

Many thanks

fermi

debt doctor usually has a good idea how to tackle DWP etc when they are being a PITA?

http://forums.moneysavingexpert.com/member.php?u=223640

Maybe give him a PM?

debt_doctor

Hi,
Thanks for the PM.
The only way to resolve these issues is to use the formal complaints procedure against the DWP.
You should follow the procedure laid down here:
https://www.gov.uk/government/organisations/department-for-work-pensions/about/complaints-procedure
You are of course correct that the debt was written off in the bankruptcy (whether it was on the bankruptcy forms or not).
Good luck, and let us know how you get on.
DD

Lioness_Twinkletoes

Thank you - that is reassuring. We'll get a letter sent tomorrow.

EDIT: Letter of complaint sent today - recorded, tracked, signed for, hand delivered by elves....My only concern is that the DWP have until mid May to respond - by then the deductions might already be in place. My client's workplace has a cut off of 10th each month so they could end up in the mire through no fault of their own and having to chase to get the money back. Hope not though.

I'll update the thread when/if we get a response. I'm not holding my breath.

debt_doctor

I think it would also be a good idea to copy your letter to the address that informed of the direct deduction that is to take place. DD

Lioness_Twinkletoes

debt_doctor wrote: »

I think it would also be a good idea to copy your letter to the address that informed of the direct deduction that is to take place. DD

Will do - thanks

Lioness_Twinkletoes

Brief update - the letters sent to the DWP aren't showing as delivered. There is no update at all on the RM website - it keeps telling me to check back later. Frustrating. I think I'm going to have to phone the DWP again to see if they've received them but find the staff incredibly unhelpful.


A letter has been sent to the payroll department, with copies of the bankruptcy order and letters sent to the DWP. We have requested that direct deductions are not made until this dispute has been resolved.

micky2phones

Lioness_Twinkletoes wrote: »

Brief update - the letters sent to the DWP aren't showing as delivered. There is no update at all on the RM website - it keeps telling me to check back later. Frustrating. I think I'm going to have to phone the DWP again to see if they've received them but find the staff incredibly unhelpful.


A letter has been sent to the payroll department, with copies of the bankruptcy order and letters sent to the DWP. We have requested that direct deductions are not made until this dispute has been resolved.

Hi, i had he same went back to 2007, each letter l answered, each call i spoke with some one. Each time my " records were updated " Last year sent letter of complaint, i know now you have to write "complaint " on envelope.

My letter had all the dates, times, names of every one who had contacted me.

Had the manager ring me to say sorry, then letter to say all the people had made a note but some how " wires were crossed" :rotfl:

They paid my some compensation, rather had someone do thier job right in the first place back in 2008

Lioness_Twinkletoes

Quick update from me - I have called the DWP twice now (phoning at 8am on the nail gets an immediate answer). They've verbally confirmed that they've received the papers and that the debt was indeed discharged. They've also confirmed that they've written to the employer revoking the Direct Deductions request. We're still waiting for a response to my formal complaint, but apparently an acknowledgment of it is on its way to us.

Once we get something in writing confirming the above we'll consider the matter dealt with.

EDIT to add: You have to laugh. We've just received a letter from the DWP stating that the direct deductions have been cancelled and that my client must get in touch immediately to discuss payment of their debt or they'll escalate to debt collectors. I know that this is a bog standard letter, but honestly!

Lioness_Twinkletoes

Another update: We've received a letter confirming receipt of our complaint and assuring us of a response no later than 27 May - that's exactly one month and one day since they received the complaint. That's in breach of their own guidelines; but of course they'll say the CSM (Customer Service someone or other) didn't receive it until much later. Must have been sitting on the 'Who gives a !!!! pile' of correspondence.

debt_doctor

Well, at least you are getting somewhere - a formal complaint is genuinely the only way to get these government departments to do anything positive.


Please keep us informed.


DD