Tax Credits Overpayment and Debt Collection Agency

glen_bel

Currently we do not get any tax credits however we are repaying an overpayment of £4k caused by a redundancy payment.
So we have had a repayment plan in place since July 2016 - £50 per month, collected by direct debit, no missed payments.
Today out of the blue we both get a letter from Advantis saying they are collecting on behalf of HMRC and we need to make contact to arrange repayment.
To say we are shocked is an understatement.


So I rang Tax Credits and basically they confirmed my plan etc but also said that our details had been passed to collection agency in error. However nothing they can do, he did give me a reference number to use but it is up to us to ring agency and explain we have a plan in place with HMRC and they should cancel any action!


I advised the call handler I was not happy and wanted to speak to a manager, that our details have been passed to a third party debt collection agency without our knowledge or consent. So I have to wait for a call back to deal with my complaint and also contact collection agency to fix their mistake, they close at 1.00 on a saturday, post didn't come til after 1.00.

I fully accept we have an overpayment but we are repaying and this letter was completely out of the blue.
Will this cause us problems with our credit file or future credit applications?

marliepanda

glen_bel wrote: »

I fully accept we have an overpayment but we are repaying and this letter was completely out of the blue.
Will this cause us problems with our credit file or future credit applications?

No.

They don’t need your consent to pass to a debt collection agent. They have admitted their mistake and are fixing on.

glen_bel

marliepanda wrote: »

No.

They don’t need your consent to pass to a debt collection agent. They have admitted their mistake and are fixing on.

Thanks for the reply.


They have said they made a mistake, I have to fix it.


I still think they need to advise you if they are passing your details to a third party?

Darksparkle

They don't need your consent and it's no secret they use them, a list of DCAs are published on the website.

Tax credit debts aren't on your credit report unless taken to court.

Dazed_and_confused

The one thing I have sympathy with the op on is this,

So I rang Tax Credits and basically they confirmed my plan etc but also said that our details had been passed to collection agency in error. However nothing they can do, he did give me a reference number to use but it is up to us to ring agency and explain we have a plan in place with HMRC and they should cancel any action!

Yes mistakes happen but I'm not sure it should be down to the op to sort out from here. Why cant HMRC contact the debt collection agency?

marliepanda

Dazed_and_confused wrote: »

The one thing I have sympathy with the op on is this,

So I rang Tax Credits and basically they confirmed my plan etc but also said that our details had been passed to collection agency in error. However nothing they can do, he did give me a reference number to use but it is up to us to ring agency and explain we have a plan in place with HMRC and they should cancel any action!

Yes mistakes happen but I'm not sure it should be down to the op to sort out from here. Why cant HMRC contact the debt collection agency?

It’s either a misunderstanding or the call handler is wrong. HMRC will pull the debt back BUT it is probably wise for the OP to tell them that as well, but of course both are needed. No debt collector will stop attempting to collect on the word of the debtor only.

Darksparkle

Dazed_and_confused wrote: »

The one thing I have sympathy with the op on is this,

So I rang Tax Credits and basically they confirmed my plan etc but also said that our details had been passed to collection agency in error. However nothing they can do, he did give me a reference number to use but it is up to us to ring agency and explain we have a plan in place with HMRC and they should cancel any action!

Yes mistakes happen but I'm not sure it should be down to the op to sort out from here. Why cant HMRC contact the debt collection agency?

The OP is waiting for a call back from a manager so I would be raising that with them.

glen_bel

marliepanda wrote: »

It’s either a misunderstanding or the call handler is wrong. HMRC will pull the debt back BUT it is probably wise for the OP to tell them that as well, but of course both are needed. No debt collector will stop attempting to collect on the word of the debtor only.

It is something I will definitely be raising with the manager, but the call handler was adamant that they could not do anything regarding the DCA and it was my responsibility to contact them and give them the direct debit reference number as proof a plan is in place. I must admit I am a bit sceptical and I do not relish dealing with a DCA.


I will definitely be pursuing a complaint.

calcotti

HMRC ought to be able to recall the debt from the agency but I do not know how you get them to do this.

glen_bel

Well just to rub salt into the wound my husband and I each got a second letter from the DCA on Monday, same letter same amount.


Rang DCA on Monday and gave them the details as advised by HMRC, hopefully DCA will return the referral to tax credits.


I'm still waiting on my 48 hr call back from HMRC. I'll give them until I get home from work tomorrow afternoon before I ring them again.

Scardy

Hi, sorry to hear your having such trouble. That!!!8217;s really bad!

Hope you don!!!8217;t mind me asking but when you set up your repayment of £50 a month for the overpayment what did you have to provide? Did you just say that was all you could afford? Or did you have to fill out a budget??