Direct Earning Attachment - DWP Historic Loan

stanfield1981

Good evening people

I really hope I have come to the right place.

In 2007, I applied for a loan from the DWP bringing my total owe to them £1,140.27. I started a new job and that was that. Heard nothing.

Last week I get a letter from their Debt Management team, telling me that they have asked my employer to commence pay through Direct Earning Attachment.

I though "hey, good luck with that, there is no court order attached" so low and behold when I opened my payslip today I had a whopping £137 deducted from my salary labelled "Court order"

I spoken to my HR manager and she told me that they have complied, and no court order is required. It also states this on the letter "The law allows us to do this without applying for to a civil court and your employer is legally bound to comply if requested to do so"

I called them and they were predictably useless claiming that "crown debts never go away" and "they are covered under the Welfare Reform Act 2012." I was also told there is no length of recovery time and that court action must be taken within 6 years but they didn't have to do this as they have never applied to a court (or something to that affect) under section 9 of The Limitations Act?

My main questions are as follows:

1) Shouldn't this debt be statute barred?
2) Regardless if a crown debt or not, shouldn't it be backed by a court order?
3) Should my employer have notified me?
4) Can the Welfare Reform Act be used retrospectively to recover old debt?]

Thanks people, look forward to the responses.

Stanfield81

BorisThomson

It is statute barred in that they can't enforce it through the courts. They don't need to do this because they can enforce a DEA without doing so. Your debt is current, so the WRA can be applied.

The "predictably useless" person you spoke to was absolutely correct, not so useless after all.

Why did you never contact them about the money you owed? You've only yourself to blame for this.

Stop_Watch

It was a loan by the tax payer give it back.

[Deleted User]

We have seen 20 year old debt being chased on here by the DWP in recent years.

stanfield1981

I was young 10 years ago, didn't have a care in the world. I heard nothing from them.

I don't mind paying them back if lawful, hence the reason why I posted here for information and advise. But 10 years later is a bit of a joke.

Cheeky_Monkey

stanfield1981 wrote: »

I was young 10 years ago, didn't have a care in the world. I heard nothing from them.

I don't mind paying them back if lawful, hence the reason why I posted here for information and advise. But 10 years later is a bit of a joke.

Of course it's lawful .......... tough luck :rotfl:

Lanzarote1938

Wish I could get an interest free loan not needing to be repaid for 10 years.

McKneff

You have had the longest interest free loan you will ever have .
Pay up and smile pet. Just like the rest of us

[Deleted User]

stanfield1981 wrote: »

I was young 10 years ago, didn't have a care in the world. I heard nothing from them.

I don't mind paying them back if lawful, hence the reason why I posted here for information and advise. But 10 years later is a bit of a joke.

They could even if needed take the money from your state pension when you retire.

Carrieanne

Yes, they can and do deduct 33% of the State Pension. We often read of cases where X was overpaid some huge sum for one or more benefits and they have to pay it off at a tenner a week which will take eons to pay back. It's when they hit State Pension age that they begin to pay in earnest.