Crisis Loan 2000

[Numpty Monkey]

A quicky for you, but I'm not sure whats best to suggest

I've just had a call from a mate, He's recieved a letter from DWP about a Crisis loan he apparently took out in 2000, he was unemployed at that time, but he can't remember getting one,
the letter says they want it paying back

My question is does he send the "Prove it " letter or the "Statute Barred" one.

The Statute barred thing is a bit ify
Benefit overpayments and social fund loans

The Department for Work and Pensions (DWP) has six 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 six years old as they don't need to go to court to do this. This applies to overpayments of benefit such as Income Support, Jobseeker's Allowance, Employment and Support Allowance, Pension Credit, Housing Benefit, Council Tax Benefit and paying back social fund loans.


Him and his misssus are both working at the moment but you never know.


What would you suggest?

[Never-In-Doubt]

Re: Crisis Loan 2000

Mate typical SB does not apply - they will deduct from future benefits - if he had a crisis loan then he needs to repay it or they will look to recover it for many years! Remember this is a loan from the taxpayer - not a bank!

[Riz]

Re: Crisis Loan 2000

It's not 'iffy'.

DWP just have avenues to recover the debt which aren't normally available to other creditors. i.e. deduction from future benefit payments.

The debt would be still be statute barred , but all that does is prevent them taking court action.

Was this letter from DWP themselves, or was it from a DCA working for them?

[Riz]

Re: Crisis Loan 2000

If it's a DCA writing:

You can send the full statute barred letter, and they will have to fook off and leave you alone as per OFT guidelines. OFT guideline apply to them, even if it is a DWP debt they are chasing.

In practice with the DCA, what you would want is for them to return the debt to DWP so you can dispute or sort it with them.

As DWP aren't bound by OFT guidelines they can still ask you to pay, even if you tell them that the debt is statute barred.

As already said, the debt would be statute barred, but that would only prevent DWP going to court. They can ask for payment and deduct from benefits.

If it's DWP writing.

Then the statute barred letter 'as is', isn't the one to send.

Instead you will be wanting to either dispute the debt, or arrange to pay it off in some way. Or just tell them to deduct from future benefits, as is their right.

If they get shirty and threaten further action, then of course you can point out that court action would be barred.

[jen_br]

Re: Crisis Loan 2000

I would ask him to call them and get a breakdown of account -- he says he doesn't "remember" but maybe once he sees the account he will either be able to see where the loan is from or find out whats going on?

[Numpty Monkey]

Re: Crisis Loan 2000

Cheers guys,
Rizzle - when he phoned he said it was from the DWP, i'll need to check,
I kind of worked out that the statute barred would be of no use, the DWP are not likely to take it to court if they can just deduct it anyway.

Jen - he said he can't remember asking for one,if he did get one he will pay it back

So the best advice is to phone them up, I think a letter Prove it type (nowt wrong with a paper chain) and findout what its about, as we the DWP never make mistakes

Thanks

[Never-In-Doubt]

Re: Crisis Loan 2000

Mate DWP make less mistakes than banks!!!

However a phone call is fine; it's simple to sort out really.

[Ames]

Re: Crisis Loan 2000

Sorry to be replying a bit late.

I've heard 'elsewhere' of a few people suddenly being told to repay old DWP loans recently. Unfortunately, they have to be paid - if currently on benefits it'll be deducted now, otherwise they'll get a shock next time they apply.

BUT, a lot of people have had success at getting the rate of repayment reduced.

I'd try a simple phonecall/letter first, if they refuse then try sending an SOA showing they'd be in hardship at the amount being asked, and making a proposal for a reasonable amount. If that's refused, then it'd be time to involve councillor/MP.

HTH.