Historical overpayment of child tax credit

kayakguy

Can anyone advise/help us?

In 2008 we were overpaid by the Child Tax credit due to their error. We were not aware that we had been overpaid until approximately a year later. At this time they stopped any further benefits to 'reclaim' what they felt we had been overpaid. The overpayment was completely their fault and we had assumed they knew how to work out the payments to us. Our circumstances did not change between the time we started receiving child tax credit until they stopped any further payments. We had kept them fully notified throughout.
Over the last 16 years they have intermittently sent us a letter asking for us to repay the amount we 'owe'. In the past we have sent letters, that they claim to have not received, and similarly have said we have been sent letters that we have not received. It all seems chaotic and unorganised.
Recently we received a letter informing us that if we failed to pay the outstanding amount by the 11th of November then our details would be passed to a debt collecting agency. 

Our questions are :
We continue to completely refute their claim, but what is the best cause of action? 
Are we covered by the limitation act which says that the limitation period for benefit overpayment is 6 years?
Is it wise to write to DWP yet again, and enter into correspondence again or will our correspondence work against us regarding the limitation act?
Does anyone have any experience of dealing with a debt collection agency?

Any advice greatly appreciated,
We are sure we can't be the only ones who have been hounded by the DWP for an amount that was their error in the first place.

peteuk

Pay it!

Thats the only option and here’s why…

Dispute you saying it was their fault, the reason for the overpayment is now irrelevant, they would say you had the info and should have it read.  It is your responsibility to know and understand your payments (Dont kill me, I know how difficult it is to read and understand)

You’re out of time to raise a complaint, if this had come out of the blue then you could get away with it but they have notified you on multiple occasions. 

Although it is more than 6 years old, they can still chase you for it.  Although they can not take you to court, they can take further action.  Passing it to a debt collector means nothing, because its DWP/HMRC can take the payment from your pay without court action. 

So if you’re not currently claiming benefits then I would either pay it in full or set up a payment plan, before they start looking at taking it from your wage.

WARNING - if it was a joint claim they may have split the amount and applied 50% of the debt to each party. 

frayedknot

Tax credits are HMRC and that department is being wound up as everyone's being frog-marched over to  UC.

It's strange that with all their powers to dock benefits or take it from your wages they are instructing debt collectors unless it's their own in-house debt collection dept. Just sounds a bit of a hollow threat.

Just keep ignoring it and hope it goes away, you've done fine so far. I know this sounds a bit head-in-the-sand but if they were really serious they'd have been taking it from benefits or getting it from your employer long ago. So there's no need to give it them, believe me they've got the statutory power to take it whether you like it or not. By giving it to them you are admitting they were right all along.

Northern_Wanderer

frayedknot said:

Tax credits are HMRC and that department is being wound up as everyone's being frog-marched over to  UC.

It's strange that with all their powers to dock benefits or take it from your wages they are instructing debt collectors unless it's their own in-house debt collection dept. Just sounds a bit of a hollow threat.

Just keep ignoring it and hope it goes away, you've done fine so far. I know this sounds a bit head-in-the-sand but if they were really serious they'd have been taking it from benefits or getting it from your employer long ago. So there's no need to give it them, believe me they've got the statutory power to take it whether you like it or not. By giving it to them you are admitting they were right all along.

They can't dock your benefits if you are not receiving any benefits. Therefore, it goes to a debt collector. You can arrange a payment plan with HMRC or with a debt collection agency. Probably best to do so with HMRC.

Robbie64

It's possible that the DWP have now taken ownership of the debt and if so, it will no longer be HMRC who are dealing with it. If so, ultimately the DWP can recover the debt from the state pension if the debt is outstanding long enough. It's best to deal with it now and not ignore it. Debt collection agencies will add on costs which will push up how much is owed.

peteuk

Robbie64 said:

It's possible that the DWP have now taken ownership of the debt and if so, it will no longer be HMRC who are dealing with it. If so, ultimately the DWP can recover the debt from the state pension if the debt is outstanding long enough. It's best to deal with it now and not ignore it. Debt collection agencies will add on costs which will push up how much is owed.

This is correct - HMCR pass it to DWP as they now control benefits that it would be claimed from on the first instance.   Debt collection should not add costs to it, it pay be passed to DWP debt team.

DO NOT IGNORE THIS as the next letter will be to your employer.