SLC overpayment refund - THEY DONT GIVE IT BACK TO YOU, JUST ADD TO BALANCE

Char78

So I read Martins post and other people getting refunded for overpayment. GREAT I thought!

However, I called them and even though theY confirmed that I have overpaid by £1700 they WONT refund me, just add it back to the remaining balance of the loan. 

All this does is increase what I need to pay back, and in my situation I know I will never pay it back in full so effectively they have stolen that money from my wages! 

Can someone help please. I dont understand how some people can get refunded for overpaying and I cant?

Ed-1

Char78 said:

So I read Martins post and other people getting refunded for overpayment. GREAT I thought!

However, I called them and even though theY confirmed that I have overpaid by £1700 they WONT refund me, just add it back to the remaining balance of the loan. 

All this does is increase what I need to pay back, and in my situation I know I will never pay it back in full so effectively they have stolen that money from my wages! 

Can someone help please. I dont understand how some people can get refunded for overpaying and I cant?

If they've added it back to the balance then they've refunded you to your bank account.

Char78

Thanks for you reply.

No, they have not refunded any money to my bank. They said they dont do this. Instead all they would do is knock off the money from what I owe. And as my post originally stated it will never be paid in full so I wont get the money.

Can anyone help with this please??

thanks in advance  

silvercar

Voluntary overpayments are never refunded. Repayments taken because you earned more in one month than another, but overall in the tax year you are under the threshold are refunded. If you are over the threshold, even by £1, you aren’t entitled to a refund.

Char78

I didnt make any voluntary payments and have over paid by £1700 and was definately under the threshold. 
Are you saying I was given the wrong information by SLC and should speak to them again?

silvercar

Char78 said:

I didnt make any voluntary payments and have over paid by £1700 and was definately under the threshold. 
Are you saying I was given the wrong information by SLC and should speak to them again?

Char78 said:

I didnt make any voluntary payments and have over paid by £1700 and was definately under the threshold. 
Are you saying I was given the wrong information by SLC and should speak to them again?

If you were under the threshold for the year, but made payments by salary deductions due to errors in tax codings or because you earned over the monthly threshold in some months (but still under the yearly threshold for the year) then you are entitled to be refunding.

the exception is if you made payments yourself because you were earning overseas.

it would be helpful if you could say why the payments were made.

Char78

yes thats all it was, Ive not made any overpayments voluntarily. Error in tax coding was the only reason.

So should I call back and push for a refund then?  
What about the fact they said they will refund but only by reducing the outstanding balance?
Thanks

silvercar

Char78 said:

yes thats all it was, Ive not made any overpayments voluntarily. Error in tax coding was the only reason.

So should I call back and push for a refund then?  
What about the fact they said they will refund but only by reducing the outstanding balance?
Thanks

Then you are entitled to the refund. They’ve taken money that you shouldn’t have had to pay. Not quite sure why an error in tax coding led to this, but that’s irrelevant, if they’ve taken money and you didn’t earn over the threshold for the tax year you are entitled to it back. Keep pushing.

and you don’t want a reduction in the outstanding balance, just in case you never clear it all and it gets written off. You want the money you shouldn’t have paid back in your bank account.

Char78

OK thanks will insist now to get it back into my bank account

Mazkay

Char78 - did you get anywhere asking for a refund. I was also told the refund would go back onto my balance and I didn't think it was something I could challenge. Thanks.