Overpaid tax credits

darwins_mum

Evening all, HMRC notified me of overpaid tax credits. I didnt dispute it, set up a payment arrangement and have stuck to it. I pay them by bank transfer using the reference number they gave me.
I have subsequently been receiving letters from Rossendales debt collectors quoting a spurious amount. I have written to them to advise that I am only prepared to deal with HMRC directly. They have now taken to ringing my home and have sent a letter stating that they are recomending enforcement action.

I have written to HMRC to ask for a total outstanding balance (just in case the overpayment relates to 2 tax years) but have received no response to date.

I will be writing to Rossendales again to order them to remove my telephone details from their system and stop harrassing me. Is it advisable for me to send them a "prove it" letter? My thoughts are that if they get no payment from me, they will simply refer the debt back to HMRC as uncollectable.

Marktheshark

They are acting as third party interlopers, Ignore them, you have no contract with them.

fatbelly

I've seen a case recently where an overpayment was being clawed back from an existing award. That didn't stop HMRC from putting the same debt with Rossendales who threatened all sorts. We've made it clear that we are not engaging with them and they should return the account.

They are just acting as collectors, not bailiffs, and you are right to deal direct with HMRC.

There is some useful info here

http://www.advicenow.org.uk/guides/how-deal-tax-credit-overpayment

darwins_mum

Thanks for the input so far. I have no ongoing entitlement at the moment, but this may change.

darwins_mum

Just a final note, I managed to ring HMRC, they stated that I do not have an agreement to repay, but they did confirm that they have on record details of a call made by myself requesting payment details. I rang them in November and proposed £30 per week. They declined thinking that I proposed £30 per month - the debt would take too long to repay. I confirmed that I would pay via bank transfer and took the details. I never received any paperwork to confirm the arrangement to pay, but have been paying without fail. I have confirmation from them that the debt is reducing, so they are receiving the payments.
I told them on the phone that I would continue to repay at the amount that I have been doing.
If he debt is returned to HMRC from Rosendales, are HMRC likely to issue court proceedings?

fatbelly

Unless this is a huge amount (say over 7k) I think any other enforcement is unlikely while you are paying.

A court claim is unlikely in any event as, if you are working, they can just go for a Direct Earnings Attachment.

darwins_mum

Thanks Fatbelly. I am currently self employed (out of contract, but still repaying HMRC directly.
Roseedales are ringing me daily. I will send them a cease and desist letter, and request that they remove my cntact details from their system.

fatbelly

If the problem is the phone calls try this

https://forums.moneysavingexpert.com/discussion/4713757

biologix

I have just been sent a debt letter from LCS with reference to a Tax credit Debt. At the time I was unemployed when I got he letter from the tax office I called them and disputed it. the only contact I have had since then was a statment a year later. I again contacted them and explained that I was on permanent sickness due to my arthritis. I have since had claim forms showing no debt. I am now a pensioner however my wife is in full time employment. Do I ignore this demand for payment from LCS?

fatbelly

I'd contact HMRC for an explanation.

If you do this in writing, you can then keep a copy of what comes back.

biologix

Thank you i will try that. I have just been on the HMRC site and found out that we are entitled to claim £345 every 4 weeks because this goes back to 20012 can i not claim back?