Letter received from LCS.

JustRaider

Hi,
I've received a letter from LCS regarding a direct repayment of a child tax credit overpayment.
Apparently HMRC have passed the debt on to this company called LCS. I have never heard of them before. The problem is that I haven't received any correspondence from HMRC over this debt.

Also my wife and I are still entitled to Child Tax credits monthly but they have been stopped due to an overpayment, and will continue from April 2017

As we are already paying back the Overpayment through the ongoing method, why are we being asked to also pay the whole lot back by direct payment ?

I think the term is 'dual recovery'. I thought HMRC phased out the 'dual recovery' process a few years ago. I thought the way that
overpayments could be recovered now was by either :
a) The ongoing method (reduction of payments on current tax
credits being paid)
OR
b) The direct method (A request to pay all the Overpayment
money back at A.S.A.P)

BUT NOT BOTH.

Has the law recently changed so that 'dual recovery' is now an option ?

Is there anyone else who has recently been involved in this 'dual recovery' process
or received a spurious letter from LCS ?

Thanks,
JustRaider

Icequeen99

Dual recovery has never been law as such, it was just a policy that HMRC introduced.

Is the overpayment that you are being asked for directly from a different year?

IQ

JustRaider

Hi IQ,

Yes the overpayment relates to the years 2004-05.

thanks
JustRaider

Darksparkle

Dual recovery has been used for many years. I do not remember it ever stopping as an option for repayment.

OP it may be of use to you to read COP26, particularly page 14.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/509048/COP26.pdf

Icequeen99

Darksparkle wrote: »

Dual recovery has been used for many years. I do not remember it ever stopping as an option for repayment.

OP it may be of use to you to read COP26, particularly page 14.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/509048/COP26.pdf

The dual recovery policy wasn't really publicised - see

https://www.gov.uk/hmrc-internal-manuals/debt-management-and-banking/dmbm555800

OP - you will need to contact DMB and quote this manual reference to them and ask them to stop recovering the direct overpayment. However, it will only suspend recovery and you will still have to pay it at some point.

IQ

JustRaider

Hi,

Thanks all for the excellent advice.

Like IQ adviced I'll phone Debt
Mgt and ask why they are taking
this action.

Justraider