Advice Required Please!!

Bennwaa

I was overpaid tax credits by £600 2017-18 and £2100 on 2018-19. This was due to me working a lot of overtime and pushing up my wage plus my wife started a new job upping our household income. I received a letter from HMRC saying I needed to repay a total of £2700 and so I immediately contacted them and came up with a repayment plan. Today I came home to find a letter from a debt recovery agency LCS saying HMRC have passed my debt to them and I needed to pay immediately. The issue I have is when I arranged repayment they sent a letter saying my repayment plan was for the whole amount. (I have a letter confirming this). When I called HMRC today they said they were mistaken and it was just for the smaller 2017-2018 amount. I offered to arrange payment for the latter amount and they have said its too late it's been sent to the debt agency! Is this correct? Also will this affect my credit rating which with help from Moneysaving expert is excellent? I'm due to remortgage in October and don't want it messed up. Please help with advice!

[Deleted User]

You need to see if it appears on your credit files.  

sourcrates

Tax credit debts do not appear on your credit files, they are a benefit, not a source of borrowing.

HMRC still pull the strings on this one, the collection agency is only acting on their instructions, so you can ignore what they ask for and just pay whats affordable, what are they going to do ?