Can debts to a government department be statute barred?

[Pixie]

My Dad received a letter addressed to my sister today at his address which she has never lived at.

The letter was from Credit Solutions about a debt to Department of Work and Pensions.

The thing is, my sister moved to Spain seven years ago so this 'debt' must pre-date that. There have been no other letters regarding this sent to my Dad's address.

So, do debts to a government department come under the statute barred ruling? If so, then this 'debt' is well past the SB date. Or have Credit Solutions bought an old debt for pennies and are trying their luck?

[kilasuit]

Re: Can debts to a government department be statute barred?

I am highly sure that any debts owed to the government would be statute barred in the sense that they cant go to court although they can recover these debts in any other suitable fashion indefinitely.

though dont hold me to that as just trying to go off memory.

[Never-In-Doubt]

Re: Can debts to a government department be statute barred?

They are statute like all others but they can reclaim from future benefits I believe.

I read summat about this - hmmm, I'll try find it but I'm sure they , in effect, never get wiped so long as you never claim a benefit.

[Riz]

Re: Can debts to a government department be statute barred?

Yep. Statute barred far as legal action is concerned, but still deductible from any future benefit entitlement.

[caspar]

Re: Can debts to a government department be statute barred?

Just won an 8 year long battle on behalf of my wife over this. Law states they have 6 years to take court action against you. If they do this they can collect at any time.

If no court action is taken within 6 years then they cannot deduct from earnings etc... but can deduct from anything paid by the state - benefits, pension etc.... in years to come should they ever claim these again.

Depending on what the debt is for, if your Dad was interviewed under caution at any stage I can dig out a raft of legislation that most of the DWP know nothing about and you can tie them in knots.

We're in the middle of negotiating suitable compensation for 8 years of a living nightmare for my wife.

Let us know what the alleged debt is for and we may be able to give you loads more info!

[Pixie]

Re: Can debts to a government department be statute barred?

Sorry, just got back to this as I've been away for a week.

The 'debt' is not my Dad's, it's my sister's.

I saw my Dad last night and he'd received another, slightly more threatening letter (addressed to my sister but at my Dad's address). He phoned them (grrrr!!)as he's worried about the debt being linked to his address. My sister has never lived at this address and my Dad has never been in debt. I'm not sure what the outcome of the phone call was but I know he told them that he didn't think it was recoverable after 6 years and they replied that SB didn't apply to government debts.

[Riz]

Re: Can debts to a government department be statute barred?

they replied that SB didn't apply to government debts.

Debt collectors will usually lie through their teeth on that one.

The exemption is only for debts that are owed for tax or duty.

All other debts to the government or crown can be statute barred like any other.

If he wants a letter to send, the let us know. The standard one can be tweaked a bit.

[Never-In-Doubt]

Re: Can debts to a government department be statute barred?

The exemption is only for debts that are owed for tax or duty.

Yep - Agreed...

---> Debt Factsheets - Liability for Debts and the Limitation Act

See below

Income Tax and VAT
There is no limitation period on debts to the Crown. You can always be pursued for tax and VAT.

Benefit Overpayments & Social Fund Loans

The Department of Work & Pensions (DWP) has 6 years to take action through the courts to recover benefit overpayments and social fund loans. This time starts running from the date of the final decision made on the overpayment and from when the social fund loan was due to be paid. But the DWP are still allowed to make deductions from your benefit for a debt over 6 years old as they don’t need to go to court to do this. This applies to overpayments of benefits such as income support, job seekers allowance, pension credit, housing benefit, council tax benefit and paying back social fund loans.

[Riz]

Re: Can debts to a government department be statute barred?

Or if you can get your head round the legalese

Limitation Act 1980 - Section 37

[Riz]

Re: Can debts to a government department be statute barred?

Yep - Agreed...

---> Debt Factsheets - Liability for Debts and the Limitation Act

I wouldn't link to that site if I was you.

They are dodgy bunch of ****s.

OFT imposes requirements on debt management lead generation firm - The Office of Fair Trading

Plus a huge amount of the info the have pinched from other sites is now waaaaaaaaaaaaaaaaaaaaaay out of date.

[Never-In-Doubt]

Re: Can debts to a government department be statute barred?

Thanks Rizzle - interesting.... I know they gleam data from other sites (they nicked a BR part from something you'd done on MSE two years ago - word for word from your MSE post)... did you notice that?

I'll try and find the link....

However, that particular piece of info that was quoted is correct (for once)....

[Pixie]

Re: Can debts to a government department be statute barred?

We're not sure what 'debt' this is. It gives her National Insurance number, that's all we know. My sister hasn't got a phone so we just have to wait for her to phone from a payphone so can't really ask her if she knows what it's about.

Personally, I think Credit Solutions is trying to pull a fast one, having bought an old debt. My Dad says he stood guarantor for her for something years ago. Is it possible that they've got the connection between my dad and my sister through this? My Dad and my sister don't have the same surname as my sister's been married for 20+ years.