Dispute or Tax Credits - now they have sent debt collectors! This is 15 years old?

in Debt-free wannabe
3 replies 261 views
Hi, can anyone please advise me i really don't know what to do.  Back in 2007 i got married, i did everything right at the time and changed all  my details.  They sent me a letter in regards to saying they had over paid me, i disagreed.  This went on for a little while then i heard nothing.  Fast forward 15 years and i have started receiving debt letters.  I have been silly and ignored them, my mental frame of mind, i just couldn't handle the situation, i have no paperwork and have moved house 3 times!

Now suddenly i have a letter from a debt collector.  I don't know what to do.  I know i did everything right and fought the whole situation back in 2007, but now i just cant remember and have no paperwork./  This is making me feel terrible,  I have been on hold for over 1.5 hours to the Citizens advice this morning.  I got cut off i have rang back and im still waiting 1 hour later :( 

Anyone give me any advice please, thank you 


  • The_UnreadyThe_Unready Forumite
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    Who is "they", as in "they sent me a letter"?
  • edited 27 May 2022 at 4:51PM
    sourcratessourcrates Forumite
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    edited 27 May 2022 at 4:51PM
    Debt collector is just acting on behalf of HMRC.

    They don`t own the debt, so all they can do is send you letters and call you, if you can put up with that, then your current problem is solved.

    Tax credits are subject to the limitation act, same as any other simple contract debt, no payment or acknowledgement for any 6 year period, renders the debt statute barred, send them the statute barred letter, and it will all go away, for now.

    I say for now, because although the debt is statute barred, which prevents recovery through legal action via the courts, HMRC/DWP/.GOV debts can also be recovered in other ways, for example from any other benefits you may now be entitled too, or become entitled too in the future, this could include your state pension.

    So the choice is yours, either write to the DCA and dampen their enthusiasm with the SB letter, and choose to deal with it at a later date, or, sort out a payment plan now, so you won`t have any nasty little surprises when you retire.

    You can write and ask for evidence of your liability if you are unsure, how much are they wanting, do you have other debts ? 

    Insolvency is one way to wipe out tax credit debts.
    Ex MSE Board Guide.

    More than a third of IVA`s fail....fact.
    Could A Debt Relief Order help you ?
    Never pay a fee for a Debt Management Plan.
    For free non-judgemental debt advice, contact either : Stepchange, National Debtline, or CitizensAdviceBureaux.
  • edited 27 May 2022 at 8:05PM
    fatbellyfatbelly Forumite
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    edited 27 May 2022 at 8:05PM
    It can also be collected by a Direct Earnings Attachment, without a court order.

    Sorry you couldn't get through on the CA Debt Helpline - they only answer 1 call in 20 and don't have a magic wand. Frankly you will get just as good advice, possibly better, from this forum.

    Personally I'd ask  the debt collector to investigate and provide evidence of the debt.
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