Customer compliance officer interview

Legacy_user

I have been sent a letter today to have an interview with a compliance officer regarding a query of my claim of benefit. Something about a change of circumstance. I havent had a change of circumstance. I get income support tax credits and housing benefit. Im a single parent, their daddy visits often. I recieved compensation of £23000 last year which i used most of to pay off all my debt i have the rest put away and havent touched it in months. Could it be because i didnt declare this? I am terrified, i honestly didnt even think of it as savings as it was from victim support. I am so scared that they think its fraud.

poppy12345

Danik1989 wrote: »

I recieved compensation of £23000 last year which i used most of to pay off all my debt i have the rest put away and havent touched it in months. Could it be because i didnt declare this? I am terrified, i honestly didnt even think of it as savings as it was from victim support. I am so scared that they think its fraud.

Yes, it will most definitely be because of that. As you're claiming Income Support then you should have informed DWP when you received that money in your bank account. As the amount was over £16,000 then your Income Support would have stopped.


You should also have report the changes to your local council for the housing benefit because that would have also stopped.


Using the money to pay off debt can be seen deprivation of capital and you'll still be classed as having the money.


When you attend the interview you need to be honest and tell them everything. You'll have an overpayment which will need to be repaid back, possibly a fine on top too.


You also need to ring your local council ASAP to tell them about the money you received.

System

Im just so glad to know thats what it is. I hold my hands up i had no idea that compensation from victim support would be classed as savings. I have no issues paying it back. However see that i have paid all my debt off would that not be seen as reasonable expenditure. I only have a few thousand left. None of the money was spent on daily living. Just debt and a bed and tumble drier.

poppy12345

Paying off the debt could certainly be classed as deprivation of capital. If this happens then you'll be classed as still having the money and your benefits would stop.

pmlindyloo

Danik1989 wrote: »

I have been sent a letter today to have an interview with a compliance officer regarding a query of my claim of benefit. Something about a change of circumstance. I havent had a change of circumstance. I get income support tax credits and housing benefit. Im a single parent, their daddy visits often. I recieved compensation of £23000 last year which i used most of to pay off all my debt i have the rest put away and havent touched it in months. Could it be because i didnt declare this? I am terrified, i honestly didnt even think of it as savings as it was from victim support. I am so scared that they think its fraud.

It is worth finding the paperwork concerning your compensation especially if it was concerning personal injury and taking it with you to the interview.

Some capital is disregarded for a year ( such as compensation for personal injury). It may be that your compensation would fall into this 52 weeks disregard.

poppy12345

pmlindyloo wrote: »

Some capital is disregarded for a year ( such as compensation for personal injury). It may be that your compensation would fall into this 52 weeks disregard.

Reading this then it may not be as straight forward as that.

https://www.markthompsonlaw.com/i-have-received-personal-injury-compensation-and-i-claim-means-tested-benefits/personal-injury-trust-to-protect-personal-injury-compensation/


Personal injury compensation will be disregarded for a period of 52 weeks, but take care and read on.
Some incorrectly say you can blow the compensation in that 52 week period. You can spend it, but if your benefits claim continues, how you spent the compensation will be scrutinized. If you are shown to have blown the money to allow you to continue claiming benefits you will be penalized. The compensation is not ignored permanently. The 52 week period is there to allow you to sort out your affairs and set up a trust, not blow the money and keep your benefits.

Alice_Holt

The information I have is that "Any money paid because of personal injury to you or your partner is disregarded for 52 weeks. Personal injury includes not only accidental and criminal injury but also any disease and injury as a result of a disease"

The relevant regulations are:
For Income Support - Sch 10 para 12A IS Regs
For Housing Benefit - Sch 6 para 14 HB Regs

I would, therefore, have all documentation ready for your interview, including:
a) Full details of the personal compensation;
b) A timeline documenting receipt of the compensation and expenditures:
c) Your savings / capital at 52 weeks after the date you received the compensation, & financial statements showing these amounts;
d) A track of your total savings - from then to the current date with documentation.

If after 52 weeks your total savings were under £16k you were still entitled to IS & HB.
Between £6k & £16k a tariff income is assumed.
Below £6k it is ignored.
https://www.entitledto.co.uk/help/savings

You will want to check council tax capital rules separately as it varies between councils.

Tax Credits are not affected by savings, but are by any derived income above £300 on those savings. Look at the tax credit information leaflets, for details.

What were / are your savings totals?

To avoid this in future - look at your award notices, be aware of your responsibilities, and in if doubt always declare a change of circumstances.
Your local advice agency / CAB is a good place to get information / clarification on such matters.

System

My compensation was from victim support. I have £10,000 left after paying debt. They havent asked me to bring anything with me apart from my passport and utility bill or bank statement for proof of name and address. Its very difficult to understand if what ive done is right or wrong i cant find anything in black and white to tell me. I feel sick to my stomach. And thats if this is even what its about. Im in northern ireland by the way incase that makes any difference. thank you

konark

I'd wait to see what they have to say first, it may be nothing to do with your little windfall.


Paying debt off is only DoC if the debt is not immediately repayable, credit cards and bank overdrafts are deemed to be immediately repayable but say a loan which you are paying back monthly is not.

pmlindyloo

konark wrote: »

I'd wait to see what they have to say first, it may be nothing to do with your little windfall.


Paying debt off is only DoC if the debt is not immediately repayable, credit cards and bank overdrafts are deemed to be immediately repayable but say a loan which you are paying back monthly is not.

I believe this is misleading.

The actual wording about it being deprivation of capital is this:

29834 Claimants or partners have a choice if they
1. give their capital away
2. spend their capital extravagantly or imprudently even if they say they have used it to pay for the necessities of life
3. pay back a debt before the agreed date, such as when they pay off their mortgage and the agreement says it is not due to be paid back for another 15 1years
Vol 5 Amendment 18 February 2006
4. pay more than the amount due on a debt, such as when they pay more than the minimum payment on a credit card debt, unless the payment has been made to remove the threat of high interest payments and the DM decides it was reasonable for the claimant to act in the way that they did.
5. pay back a debt which is not a legal debt capable of enforcement.
6. make payments to a flexible current account mortgage which reduce the outstanding balance on the mortgage.