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    • NeilHO
    • By NeilHO 10th Nov 17, 9:24 AM
    • 1Posts
    • 0Thanks
    DWP Crisis loan
    • #1
    • 10th Nov 17, 9:24 AM
    DWP Crisis loan 10th Nov 17 at 9:24 AM
    Hello and please help

    DWP have contacted me after 25 years saying I owe about 7. It was from a crisis loan I had in 1995. This has come out of the blue. For me there is a point of principle in settling this. So I have some questions
    Does the 7 year no contact rule apply or is a crisis loan on they can chase until I die.
    Can they send in debt collectors for a loan of 7

    Is this all even correct, and why now after nearly 25 years

Page 1
    • camelot1971
    • By camelot1971 10th Nov 17, 9:38 AM
    • 683 Posts
    • 1,064 Thanks
    • #2
    • 10th Nov 17, 9:38 AM
    • #2
    • 10th Nov 17, 9:38 AM
    Yes, they can chase you for it your entire life and even deduct it from pension payments!

    The IT system DWP use is ancient and they occasionally reconcile outstanding payments. I agree its a silly amount but they are obligated to collect it - its tax payers money, after all.

    If you owe it, pay it.
  • National Debtline
    • #3
    • 10th Nov 17, 9:42 AM
    • #3
    • 10th Nov 17, 9:42 AM
    Hello Neil and welcome to the forum.

    Whilst the 6-year (NB not 7 years) limitation period would apply to this debt, meaning no court action is possible, the DWP does potentially have other means of recovering such a sum which are not time-barred and do not require legal proceedings. These include clawing it back from any fresh benefit entitlement you receive, or alternatively a Direct Earnings Attachment to compel an employer to make a deduction from your wage.

    It also doesn't rule out private debt collection companies contacting you on DWP's behalf, though they have no special legal powers in their own right.

    I hope that information is useful.

    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • StopIt
    • By StopIt 10th Nov 17, 9:49 AM
    • 1,395 Posts
    • 1,249 Thanks
    • #4
    • 10th Nov 17, 9:49 AM
    • #4
    • 10th Nov 17, 9:49 AM
    Ah, the joys of the DWP.

    This will cost them more than the sum recovered to do this, but it doesn't mean they wont!

    If they send the debts to a DCA, tell them it is statute barred and they'll send it back.

    Then expect to see that 7 come out of your wages one month, because that's what they do!

    Why it took them 22 years to do this, ask them!
    I'm a Board Guide on the Debt Free Wannabe, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to

    In debt and looking for help? Look here for the MSE Debt Help Guide.
    Also, If you need any free and impartial debt advice, the National Debtline, Stepchange, and the CAB can help.
    • AndyCF
    • By AndyCF 10th Nov 17, 9:55 AM
    • 216 Posts
    • 575 Thanks
    • #5
    • 10th Nov 17, 9:55 AM
    • #5
    • 10th Nov 17, 9:55 AM
    Its a shame (at least as I understand it) the 'claim time period limit' does not apply both ways. As far as I'm aware I am still owed some money from about 5 years ago (a couple of hundred I calculate) but have not had any joy in trying to get it back yet.

    I'm afraid as others have indicated they are likely to spend 100 to recover 10 simply on principle...
    Last edited by AndyCF; 11-11-2017 at 6:51 PM. Reason: forgot the estimated amount, not that it matters
    • nomoneytoday
    • By nomoneytoday 10th Nov 17, 3:02 PM
    • 4,745 Posts
    • 2,875 Thanks
    • #6
    • 10th Nov 17, 3:02 PM
    • #6
    • 10th Nov 17, 3:02 PM
    If you owed it, it's only 7 so why not pay it?

    The recovery costs have to be borne by everyone else, again for 7.
    • Lanzarote1938
    • By Lanzarote1938 11th Nov 17, 6:25 PM
    • 441 Posts
    • 1,097 Thanks
    • #7
    • 11th Nov 17, 6:25 PM
    • #7
    • 11th Nov 17, 6:25 PM
    7 would have bought a fair bit 22 years ago. See it as an interest free loan.
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