Taxcredits Debt: LCS & Pastdue

maddiction

Hi,

Looking for some advice with a Tax credit over payment.


Self employed, child, tax credits paid in to partners bank account (so I have never directly seen them), over payment has occurred because of the silly way the tax credits work when your self employed… they seem to knowingly pay too much.. and then have added up over a couple of years. Problem is the partner has finally gone back to work so total income is over the threshold and just out of the tax credits system (which makes us worse off than anyone in the top end of the tax credits system…) so HMRC decided to demand a huge lump sum (4k+)… Which is a little unfair imo to demand from a family just out of the tax credits threshold… in one lump, after it had occurred because of their stupid system and over a period of time.


Have written to HMRC offering to pay a token lump sum (~25%) and then affordable monthly payments to sort it out.
Have not had any response from HMRC beyond there saying they believed the debt to be accurate and sending the tax credits paperwork to show… which in its self is overly complicated and hear to understand (I never particularly understood there system and how they present the information, let alone come to a conclusion.), no response to the offer made.


Have had letter from LCS debt collectors, which I have largely ignored as they have just said ‘ we might write to you more…’.


Have now had a phone call, text message and a letter in the post from Past Due Credit Solutions, so I’m guessing LCS have sold it on?


Have also since had another 1k over payment demand from HMRC and now a love letter from LCS….

I have already written to HMRC offering to start a payment plan, with no response. I don’t particularly want to start a dialogue with a debt collection agency who’s only agenda is to get as much money as possible, thorough what-ever tactics they can get away with… and to my mind I don’t have any business with.


So I’m currently wondering what the best course of action is to deal with the problem. And after some information on what can these debt collection companies get away with in reality (as opposed to their threats)?


Cheers,


m

sourcrates

Hi,

In order to take legal action, the intended litigator must own the debt.

HMRC do not sell debts on.

The debt collectors are just acting on behalf of the government.

Debt collection agencies used by HMRC are:

1st Locate (trading as LCS)
Advantis Credit Ltd
Akinika Debt Recovery Ltd
Apex Credit Management Ltd
Bluestone Credit Management Ltd
CCS Collect (also known as Commercial Collection Services Ltd)
Drydensfairfax Solicitors
Fidelite Credit Management
Fredrickson International Ltd
Moorcroft
Past Due Credit Solutions (PDCS)
Rossendales Ltd
Walker Love

All the debt collector can do is bark very loudly, but you will soon realize they have no teeth.

This appears to be par for the course with HMRC complaints procedure, on this occasion you may be better off ringing them to make arrangements to pay.

https://www.gov.uk/tax-credits-appeals-complaints/complaints

tallyhoh

I rang them & offered them monthly payments which they accepted immediately,

limars19

husband self employed , tax credits paid to me we were over paid £1345 rang them up and they wanted to know if i could pay it back in a lump sum i said no the over payment was over a year so divided it by 12 and paid it back monthly, and they accepted that. hope it gets sorted

BettyBones

I was overpaid £4k+ too. They wanted full payment within 2 weeks but I rang them up and politely asked if I could have more time to pay. They suggested £130 for 36 months which was fine by me.

BeingDebtFreeStartsHere

We received a letter last year from HMRC demanding we pay an overpayment of just under £800. As we are on a DMP I contacted them and informed them I could not pay this back in one lump sum. They asked what we could realistically afford and I offered £35 a month which they accepted no problem.

Just give them a call - I am sure that you can come to an arrangement that suits both parties - it is best not to avoid contacting them - timely communication with regards to any debt is key.

Good luck,

BDFSH x

zenshi

I also have an OP of tax credits to pay back. It took them nearly 5 years to decide I owed them! I appealed but that's another story.....

Anyway, I rang to arrange a payment plan and was told that their policy of payments plans had a 10 year limit to pay back so that was how we came to an agreed monthly figure

fatbelly

zenshi wrote: »

Anyway, I rang to arrange a payment plan and was told that their policy of payments plans had a 10 year limit to pay back so that was how we came to an agreed monthly figure

They make it up as they go along.

They'll accept what you can afford

There's a good guide here

http://www.advicenow.org.uk/guides/survival-guide-dealing-tax-credit-overpayments

maddiction

Thanks for the replies thus far!

First off, those who have said 'them' could you define who 'them' is (i.e. HMRC or third party debt collection agency)?

I'm quite happy to deal with HMRC (whom I have already written to on a couple off occasions, offering to start making payments monthly if they agreed... they've never responded...).

I'm not so happy to deal with these debt collection company goons...(don't have any interest in giving them any of my bank details etc, have not trust or faith in that sort of 'company'...) and if I do have to, it will be in writing not on the phone.

Couple of questions:

Will Past due pass the matter back to HMRC if ignored (I don't have much interest in talking to them, i'd rather deal with HMRC.. it's there farsical system that's created the problem)?

What can past due (or other debt collection companies) do apart from phone and write to me menacingly?

If HMRC can't be bothered to reply to a decent offer, if/when passed back to them will they then start replying to sort out?

Or is it better to deal with the debt collection company (are they more likely than HMRC to accept lower monthly payments and not chase for the full amount in one go)?

Lastly; as the advice seems to be NOT to ignore, (now I'm assuming at this point people have meant the debt collection companies, not HMRC); What are peoples experience of contacting them? Do they tend to try and demand the whole sum in one go? Get as much as they can? Or happy to consider offers to pay a monthly figure (if so, is an offer that is affordable and would clear the figure in say 4 or 5 years likely acceptable or will they try and go for as much as possible as quickly as possible)?


Some what frustrating all this as my own standing with HMRC with my own personal and business is very good... Just the point that a 3rd person is brought in to the equation (tax credits payments having gone to the other half... who is at best.. hopeless with money...so hasn't ever squirreled any away etc...). More so frustrating they can make the same 'over estimate' (what those of us working in the real world, would call a mistake......) repeatedly over several years. And even more so that the current benefits systems seems to penalize those who try to escape it......

Cheers,

m

BettyBones

I rang HMRC as soon as I received notification of the overpayment so no DCA's were ever involved. If I were you I would ring HMRC to try and agree a repayment plan, which can be set up then and there if they agree. I wouldn't write. My experience of writing to them is that paperwork is ignored (I initially submitted an appeal form and 18 weeks later they just sent me the demand for payment again. I rang them up to enquire about my appeal and they said it hadn't yet been looked at. Despite the fact that appeals are supposed to be dealt with within 13 weeks! At that point I just gave up, accepted the debt and made an arrangement to pay £130/month for 3 yrs) Good luck with it all, I hope you manage to get it resolved

maddiction

I find it a joke that HMRC can't even reply to postal correspondence....

If I arrange anything on the phone I'll have not proof of anything that has been agreed.....

Anyway: current question I am after answering is: Is it better to wait until it gets passed back to HMRC or to deal with the debt collection agency now (as in are they more likely to accept an offer of payments we can afford or will they try and get every last penny they can?)?

Also as I gather the debt hasn't been sold to the collection goons have they got any power's to accept an offer of full and final settlement (or wold that just take that as a target to try and recover in one lump) ?

Thx

m