DWP CLAIM BACK PENSION OVERPAYMENT DIRECT FROM BANK

MCT56

My wife was the sole executor of relatives estate and she was aware that the Bank had frozen the accounts following the death and would release the funds when confirmation was obtained from the court. She still had read only access to the accounts so kept an eye on them. One day she logged into the bank and could see that almost £400 had been removed without her knowledge and it was not clear why. She was concerned and immediately phoned the bank to ask who had removed this money and under what authority. She was told that it was the DWP. Neither she nor I could believe this had happened without any advance notification to the executor. Has anyone else experienced this policy as it's not right ? If they has asked for the money back my wife would have had no objection but to bypass her was hardly playing ball. And to cap it all the bank said they had to do whatever the DWP asked and that executors are not advised. Really !

Spies

Seems like they're supposed to notify the executor in writing but for whatever reason that hadn't happened.

Ultimately though, they're entitled to the money back, getting het up about it won't change the outcome. 

HillStreetBlues

I also thought they had to go though the executor.  I didn't think they were allowed to queue jump.
If you find they shouldn't have taken it then make a formal complaint to the bank.

TELLIT01

DWP aren't queue jumping.  Unlike many others who are owed monies from the deceased estate, they have a legal right to recover the money.  At least that used to be the case.

J63320

https://www.moneysavingexpert.com/news/2022/01/dwp-has--no-legal-power--to-force-you-to-repay-pension-or-benefi/

So has the law been changed?

Pollycat

J63320 said:

https://www.moneysavingexpert.com/news/2022/01/dwp-has--no-legal-power--to-force-you-to-repay-pension-or-benefi/

So has the law been changed?

Thanks for posting that.
I remember reading that article too.

HillStreetBlues

TELLIT01 said:

DWP aren't queue jumping.  Unlike many others who are owed monies from the deceased estate, they have a legal right to recover the money.  At least that used to be the case.

To my knowledge if there is a debt owed to the DWP then they are an unsecured creditor and should be treated like any other unsecured creditor.

Hermann

MCT56 said:

My wife was the sole executor of relatives estate and she was aware that the Bank had frozen the accounts following the death and would release the funds when confirmation was obtained from the court. She still had read only access to the accounts so kept an eye on them. One day she logged into the bank and could see that almost £400 had been removed without her knowledge and it was not clear why. She was concerned and immediately phoned the bank to ask who had removed this money and under what authority. She was told that it was the DWP. Neither she nor I could believe this had happened without any advance notification to the executor. Has anyone else experienced this policy as it's not right ? If they has asked for the money back my wife would have had no objection but to bypass her was hardly playing ball. And to cap it all the bank said they had to do whatever the DWP asked and that executors are not advised. Really !

Assuming the executors had informed the DWP of the death, typically using the 'Tell us once' but not necessarily, then the DWP should not have taken the funds and the bank should not have allowed the payment.

The DWP should have written to the Executor and had the debt dealt with as an unsecured debt.

I would suggest the Executor makes a formal complaint to both the DWP and the Bank, referring the bank to the Ombudsman if they don't respond appropriately.  

If no one lodges complaints this sort of unacceptable behaviour just continues.

Hermann

TELLIT01 said:

DWP aren't queue jumping.  Unlike many others who are owed monies from the deceased estate, they have a legal right to recover the money.  At least that used to be the case.

I think that provided the DWP were informed of the death then the debt is treated as an unsecured debt.

As such there may be no funds available to repay them with, depending on circumstances. In this case the DWP have circumvented the correct process. 

(All unless there has been a very recent change in the law)

sammyjammy

Has the death been recent?  Given the amount it sounds to me as if the monthly pension was paid before DWP was informed of the death and have just requested that payment back.

gbhxu

I didn't like the wording of the letter and told them straight that as far as I was concerned, it would be theft and I would take legal action if they tried to reclaim alleged overpayment when my father died nearly 3 years ago.

They never tried to reclaim overpayment.