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I know a few fellow American's who lost/ had stolen their passport with the old style ILR stamp in it and it is a huge mess.
The ones that were in the UK had to either apply for citizenship or leave the Uk and restart the entire visa process all over again.
Outside the UK was even a bigger mess. Like flying back to the US and starting the visa process all over again.
They should have applied for a BRP years ago as they need a BRP to show an employer. They would not have been granted British citizenship if they didn't hold a valid ILR.
https://www.gov.uk/british-citizenship
If they didn't want citizenship then why not apply for their ILR replacement BRP instead?
https://www.gov.uk/biometric-residence-permits/lost-stolen-damaged
Those who don't have a valid visa have to start the visa process/again/get on the correct visa.
Some have been using an invalid ILR stamp in a passport to show to employers, landlords, claim UK benefits. By having to apply to UVKI (UK Visa and Immigration) for a Biometric Residence Permit for work, UKVI can check their records to see if their ILR stamp is valid and if it is, they issue a BRP.
If those with a valid ILR stamp in a passport need to rent another house or a room in someones house, it will be easier to prove they are lawfully in the UK if they have a BRP. Landlords get huge fines too if they don't check.
https://www.gov.uk/landlord-immigration-check
Because it has been easy for illegals/overstayers to live in the UK in the past, the UK have brought in two new laws. Employers and landlords face heavy penalties if they don't check their status, the NHS must now bill and add 50% to the bill if there is no insurance to pay (which the NHS keep), banks to check and accounts are closed, driving licences are revoked, etc, etc, as per the Immigration Act 2014
https://www.gov.uk/government/collections/immigration-bill
and the Immigration Act 2016.
https://www.gov.uk/government/collections/immigration-bill-2015-160 -
If they don't have lawful status in the UK, they might want to see a solictor to discuss any options they may have.0
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