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Housing benefit overpayment deduction from wrong person

Hi

I bought a property which is tenanted and the previous landlord received an overpayment in housing benefit because he received the benefit directly. Now the
ownership has changed, the council still deduct the overpayment from me as the new LL and will not listen to any complaints made to them about this.
They claim the debt is attached to the tenant, and regardless that she didnt directly receive a penny in overpayment, continue to effectively reduce her benefit.

I have quoted the Overpayments regulations of 2013, part 2, section 4 which say it's the payee who should repay the overpayment, but they claim that the regulations still allow them to deduct from the tenant.

They will not accept any appeal as one was already made concerning the overpayment already.

Any ideas??
«13

Comments

  • aneary
    aneary Posts: 921 Forumite
    If there was an overpayment then the tenant needs to pay this back to the LL.

    Eg rent = £500 the previous LL received the £500 from the HB there was an overpayment so HB is only £400 therefore the remaining £100 should come from the tenant.
  • whitehorse123
    whitehorse123 Posts: 24 Forumite
    Second Anniversary
    edited 14 August 2017 at 5:39PM
    the overpayment was paid direct to the previous LL. the tenant did not get any overpayment.

    The overpayment should be pursued from the previous LL who received it.
  • aneary
    aneary Posts: 921 Forumite
    It's very rare for HB to be paid directly to the LL.

    Regardless of what the HB is that will not change the rent.

    The HB was overpaid to the claimant it doesn't matter that it went to the LL directly, so the overpayment is being clawed back by reduced payments and that means you are receiving less rent so the tenant needs to find a way to make up the rent in the same way they would have to if you didn't recevie the HB direcetly.
  • elsien
    elsien Posts: 37,459 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Could the tenant chase the previous landlord for the over payment? If the tenant can get the council to confirm the overpayment and who it went to, then would a letter before action be worth considering?
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
  • Geoff1963
    Geoff1963 Posts: 1,088 Forumite
    Could the tenant chase the previous landlord for the over payment? If the tenant can get the council to confirm the overpayment and who it went to,
    Sounds like a plan. The previous LL might not know.
  • the previous LL has told me that he was always paid directly, and the council just give some robotic response.

    the tenant is not in a position to pursue anyone, but what i cant get is the the councils attitude to this.
  • parkrunner
    parkrunner Posts: 2,610 Forumite
    Eighth Anniversary 1,000 Posts
    the previous LL has told me that he was always paid directly, and the council just give some robotic response.

    the tenant is not in a position to pursue anyone, but what i cant get is the the councils attitude to this.

    Just ask the previous LL for the money, or does he deny he was overpaid?
    It's nothing , not nothink.
  • IAmWales
    IAmWales Posts: 2,024 Forumite
    edited 14 August 2017 at 6:20PM
    the overpayment was paid direct to the previous LL. the tenant did not get any overpayment.

    The overpayment should be pursued from the previous LL who received it.

    That's wrong. Despite the HB being paid to the LL the tenant remains liable for any overpayment. In this case they are deducting the overpayment from their benefits, as they are entitled to. It is the tenant that needs to make up any shortfall to you.

    The tenant can pursue the LL for the overpayment, but you would not be a party to that.

    Edit: the above would not apply if the landlord falsely represented their position to the LA. In that case they may be pursued directly. Who caused the overpayment?
  • The overpayment regulations specify that the payee is liable to repay.

    Would any judge allow a tenant on benefits to pay the debts of a multi-property owning landlord in the name of council bureaucracy?
  • IAmWales
    IAmWales Posts: 2,024 Forumite
    edited 14 August 2017 at 6:47PM
    The overpayment regulations specify that the payee is liable to repay.

    Would any judge allow a tenant on benefits to pay the debts of a multi-property owning landlord in the name of council bureaucracy?

    A judge would follow the regulations. Who was responsible for the overpayment occurring?

    The tenant is liable to you for the underpayment in rent. You are chasing the wrong people.

    Your interpretation of the statute is selective, you need to read the section as a whole.
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