DWP Crisis loan

NeilHO · 10 November 2017 at 10:24AM

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

Thanks

[Deleted User] · 10 November 2017 at 10:38AM

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 · 10 November 2017 at 10:42AM

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.

Dennis

StopIt · 10 November 2017 at 10:49AM

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!

AndyCF · 10 November 2017 at 10:55AM

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...

nomoneytoday · 10 November 2017 at 4:02PM

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 · 11 November 2017 at 7:25PM

£7 would have bought a fair bit 22 years ago. See it as an interest free loan.

DWP Crisis loan

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