DWP Budgeting Loan

ScarlettTiger

In 2010 I got a Budgeting loan through DWP, I don't have an exact date of when. But I came off income support September 2010, so the loan was never repaid. I received a letter in march this year, asking for the money. I was told on here to write to them, which I did, I never got a reply but they took a DEA out of my wages, however I don't earn enough for even the lowest threshold amount, so no money was taken, but the order shows on my wage slip.
Today I received a letter saying they've heard nothing from my employers, and I've got to get my employers to contact them urgently within 14 days of the date of the letter, which was 6 days ago, so I've already lost a week!
If they don't hear from my employer, they will seek to recover the money by other means. This is now over 6 years old, and they must've had some contact with my employers for it to show on my wage slip.
What do I do now.
Thanks for any advice.

National_Debtline

Hi

If 6 years pass with no payment or written acknowledgement from you and if they haven’t obtained a CCJ, the debt becomes statute barred. That means they wouldn’t be able to enforce the debt in court.

Although they don’t need to go through court to recover through a DEA, that doesn’t appear to be an option for them on your current salary. As you aren’t receiving benefits it sounds like their options to recover the debt are limited to just asking you for the money at the moment, if the loan is statute barred.

You could inform them that you believe the debt to be statute barred. Although your letter to them earlier in the year may have acknowledged the debt within the 6 years window, the onus is on them to prove it isn't statute barred. You could also offer them an affordable instalment plan if you want to repay. Bear in mind they could attempt another DEA in the future so they might still be able to recover the money if your income increases.

James
@natdebtline

ScarlettTiger

All I put in the letter, was asking them for proof of what I owed, I didn't say I owed them anything. But I never had any reply.
I am in receipt of working tax credits, could they take money from that?

fatbelly

As far as I know, Scarlett, there is still no mechanism for recovering DWP debt from tax credits.

And I think you sent a prove-it, so that would not acknowledge the debt. I remember the discussion on your last thread.

https://forums.moneysavingexpert.com/discussion/5428647

I see no advantage in your employers having a discussion with them. What would be the point of the discussion?

It will probably go to a debt collection agency - I think we covered that in your last thread

ScarlettTiger

Ok, it's just I thought things had been sorted until this letter arrived, so I wasn't sure what my next steps should be.

fatbelly

Wait for the debt collector letter and send the statute barred letter I think

https://forums.moneysavingexpert.com/discussion/2606811

sourcrates

fatbelly wrote: »

Wait for the debt collector letter and send the statute barred letter I think

https://forums.moneysavingexpert.com/discussion/2606811

I agree with Fatbelly on this.

The DCA will not be at all familiar with the origins of your debt, or its enforcability status.

Statute barred template letter available here :

https://www.nationaldebtline.org/EW/sampleletters/Pages/Time-has-run-out-to-recover-the-debt-%28sole-name%29.aspx

Edit : or use Fatbellys.

ScarlettTiger

Brilliant, thank you for your help.