Help DWP chasing 13 year Old Debt

[Mark71]

Hello all,

Am hoping someone can help or advice me how I should handle this.

In June 2004 I received a letter demanding payment from a collection agency for the amount of £638 on behalf of DWP (Department of work and Pensions) relating to overpaid income support.

I was shock and astonished by this and immediately called DWP for more information about when I was over paid the Income support as stated.

They told me that the overpayment related to claims I was making during the period of May 1993 to October 1993 or there about. (I have no reconciliation of this)

I then wrote a letter to DWP outlining that I was not notified of this overpayment and because of this they have deprived me of the right to appeal and giving the time that has passed how they expected me to keep records of my own dating back to that period.

After writing my first letter in July 2004 I, I did not receive any reply and I considered the case closed. Now in October 2006 I have now received another letter from a different collection agency requesting payment regarding this same matter.

Before I loss my patience and say things I shouldn’t, I was hoping someone can tell me the right way I should go about this to ensure this matter is properly put to bed!

I am happy to have this case heard out in some sort of tribunal or even in court, but I don’t want the bailiffs knocking my door before it gets that far.

Can someone please let me know your thoughts on what my next and best course of action should be.

Looking forward to hear any comments.

Thanks

Mark

[lookinforinfo]

The debt is too old to collect on and they will know that.

Write a brief letter explaining that as the debt is so old, it has become

unenforceable in Law. A further attempt by you to chase for this amount may

lead to me instituting a charge of harassment.

 

FUrthermore, under the guidelines issued by the Office of Fair Trading on Debt

Collection Practices, this is what they had to say about this practice of yours-

 

"debtors should not be led or allowed to believe that they are legally liable to pay

such charges where this is not the case. Failure to act in accordance with these

principles is likely to be regarded by the Office as an unfair or improper business

practice within section 25(2)(d) of the

Consumer Credit Act and thus relevant to the issue of fitness to hold a consumer credit licence."

 

And you could end with something like "I trust this will end communication between us."

[handyandy]

Send them this letter and forget about it.

 

The Loan Company

Company House,

Church Street,

Newtown,

Kent,

R1 7HG

 

WITHOUT PREJUDICE

 

Dear Sir/Madam

Acc/Ref No 4563210025897412

 

You have contacted us regarding the account with the above reference number, which you claim is owed by ourselves.

 

We would point out that under the Limitation Act 1980 Section 5 “an action founded on simple contract shall not be brought after the expiration of six years from the date on which the cause of action accrued.”

 

We would also point out that the OFT say under their Debt Collection Guidance on statute barred debt that “it is unfair to pursue the debt if the debtor has heard nothing from the creditor during the relevant limitation period”.

 

The last payment of this debt was made over six years ago and no further acknowledgement or payment has been made since that time. Unless you can provide evidence of payment or written contact from us in the relevant period under Section 5 of the Limitation Act, we suggest that you are no longer able to take any court action against us to recover the alleged amount claimed.

 

The OFT Debt Collection Guidance states further that “continuing to press for payment after a debtor has stated that they will not be paying a debt because it is statue barred could amount to harassment contrary to section 40 (1) of the Administration of Justice Act 1970”.

 

We await your written confirmation that no further contact will be made concerning the above account and confirmation that this matter is now closed.

 

We look forward to your reply.

 

Yours faithfully

Mr A N Other

[lookinforinfo]

If you are going to use Andy's letter, you will need to change some of the wording

since you knew nothing of this debt until last year, and therefore have never made

any payments towards it.

 

So you will need to amend this

 

The last payment of this debt was made over six years ago and no further acknowledgement or payment has been made since that time. Unless you can provide evidence of payment or written contact from us in the relevant period under Section 5 of the Limitation Act, we suggest that you are no longer able to take any court action against us to recover the alleged amount claimed.

 

To something like this-

 

I have never acknowledged the debt so unless you can provide evidence of payment or written contact from me in the relevant period under Section 5 of the Limitation Act, I suggest that you are no longer able to take any court action against me to recover the alleged amount claimed.

[Mark71]

Lookinforinfo and Handyandy,

 

Thank you very much for your advise, I have written a new letter including all the information you gave me and will be sending it today via recorded delivery.

 

I the first letter I wrote to them I did state about the Statue of Limitations, but I was not knoledgable enough to expand on it as you have done.

 

Your advise has lefted a huge weight off my shoulders.

 

Thank you very much.

 

I will let you know the outcome.

 

Mark!

[Mark71]

Hi guys,

 

It dont seem like this has gone away

 

I received another letter yesterday from the debt agency. I decided to call them to advise them about the Letter I sent to Department of Work And Pensions, and the person on the other side told me that he was advised by DWP to continue to chase the debt. He also said as this is a goverment debt, the Statue of Limitations does not apply. (can someone confirm if this is right?)

 

I was thinking of forwarding the letter on to the Debt recovery company. Do you think that this is worth doing?

 

Also how do I enforce the harassment regualtion contrary to section 40 (1) of the Administration of Justice Act 1970?

 

Any advice would be highly appreciated.

 

Mark

[diddled]

I belive the DWP are correct in saying the Statute of Limitations is not applicable in relation to Government debts.

I will try and find some definite information on this for you

[Mark71]

Thanks, I hope you find something

[Mark71]

Hi Guys, i think I found my own answer, in a posting from MCUH.

 

On the National Debt Line it states;

 

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.

[lookinforinfo]

The gobvernment is subject to th erule of Law as are we all. That is why there is a statute of limitations on parking fines of 3 years. However, in cases such as fraud,

there is no time limit.

 

Here the critical time is when the DWP noticed their error and wrote to you. I am

bound to say that in the unlikely event of them not discovering the overpayment

until after 2000, that it appears inequitable that the statute of limitations should

start from that time. After all, the ability to reclaim the money legally had already

passed. And even if they didn't discover it until 2000, unless it was late on in the

year, the statute of limitations has been passed again anyway.

 

It is a pity that you only got the dca to admit over the phone that government

are not subject to the statute of limitations, nor that they confirmed that the

Dwp had insisted that the debt should be pursued- another advantage of keeping

all contact by letter.

 

You now need to write to the dca confirming that the DWP are subject to the statute of limitations and that to continue to chase you is a gross breach of the

Consumer Credit Act section 25 [2][d] in view of the time lapse, and their

continued efforts to recover an amount that is legally unenforceable. In

addition, they are in breach of the Human Rights Act 1998 article 8

protocol 1. Send a copy to the OFT with a strong complaint.

 

Then write to the DWP, pointing out that you have been advised by the dca

that they have been exhorted by the DWP to pursue a 13 year old debt despite

the statute of limitations having come into effect 7 years ago. The department

is too well versed in law not to be unaware that by attempting to instigate

proceedings against you is a gross misuse of their powers. You expect a letter

by return confirming that all proceedings against you will cease, and the dca

cancelled. Failure to do so will result in a complaint to the OFT as you are

already in breach of the Consumer Credit Act 1974 section 25[2][d] and the Human Rights Act 1998 article 8 protocol 1. [incidentally Mark, it is possible to obtain legal aid for

pursuing them on human rights].

[Mark71]

Thank you Lookingforinfo.

 

A little lesson for me in making sure all communication is to be done in writting.

 

Will advise you all of outcome!

[dax]

Im astonished Mark with your thread and what a horrible shock!

 

Good luck with sorting it..

[nikkym10]

Hi

 

I have a friend that works for DWP and was told that they have to chase the debt but if you just keep refusing to pay they will eventually just give up, he says sometimes in his mind he just wants to shout dont pay but he is monitored so cannot give any indication to the caller. Hope this helps.....

[ladymx5]

Have a look at this site. I hope you find it helpfull Debt Factsheets - Liability for Debts and the Limitation Act

[Mark71]

Thanks for all your comments! They seem to have gone quite for now

[sequenci]

If you are no longer on benefit and have received a demand for payment, it can be recovered by proceedings in the county court. The Department for Work and Pensions (DWP) must apply to court within six years of its decision on the amount of the overpayment.

 

It seems like the demand was made in 2004 for the payment, so under s9 of the limitation's act they would have until 2010 before the debt is stat barred.

[Mark71]

Thanks Sequanci! Thanks everybody for your comments

[breedsey]

I'm having exactly the same problem but its now gone one stage further, its now been passed to a debt collection agency who are saying the 6 year rule doesn't apply to government debts.

 

Anyone offer me some advice?

 

The overpayment was made in 1995 and they contacted me again in about 2004.

 

I was meant to start paying them back in 1996ish but was made redundant and recieved a letter from them saying i didn't need to pay it back while i was on benifits and they would contact me when i had to start paying. That was the last i heard from them for about 7 years. I was even told by operatives at the DWP that they could only make me pay it back if i went back on benefits.

 

Any suggestions? Its for £480.

[breedsey]

[cas28]

Hi

 

in 1999 - 2003 i was on income support, i think it was in 2001 i borrowed a loan from dwp. I have been working since 2003-2004 and still working. i recieved a letter from DWP yesterday demanding £580 or they were going to pass it on to dept collectors.

 

i cant remember whether i paid it back or not a certainly would have proof of it.

 

can they demand this money back??

 

help

[sequenci]

Hey cas, you may find that you get more responces if you start a new thread about your sitaution. If you need a hand in doing this just geive us a shout!

 

best wishes,

 

Seq

[The GodMother]

SAR them write to the office who sent u the letter with a SAR request that should tell u everything remember to add your NINO.

[Shepnbo]

Hi

 

I have a friend that works for DWP and was told that they have to chase the debt but if you just keep refusing to pay they will eventually just give up, he says sometimes in his mind he just wants to shout dont pay but he is monitored so cannot give any indication to the caller. Hope this helps.....

 

Hi I`m sorry if I`m not doing this right but i`ve never used a forum before. My father passed away on 19/12/08 my mother has just received a letter from the DWP saying that my father was overpaid £1778.42 on these dates 10/02/94 till 26/07/96 and 26/01/99 till 24/05/99 they want to reclaim this money from his estate. Obviously I can`t ask my father if this is correct, my mother is a 74 year old disabled woman who is now sick with worry that she has to pay this back, could someone please advise me if she has to pay this money back or if the limitation act applies to her situation.

[42man]

This is awful....I would write stating that it is completely unnacceptable for them to write to you at this time of grieving, and state that the debt is barred by the statute of limitations act 1980.....I would also urge you to take a trip to see your local MP too....

[yourdeelight]

The tread says that you cannot be pursued after a certain period for a debt - but that the DWP - CAN - deduct overpayments if you are receiving benefits after ANY period. If that is correct - can the DWP be stopped? Or is it the case that the Statute of Limitations does NOT apply to them. Also I have a letter saying I owe money but no info about WHY (other than a catchall ie 'overpayment'..) My case - dates back to 1994. Having recently recieved IS because My partner abandoned the family home - THE FIRST thing I got - weeks before any benefit payment was a DEMAND for this overpayment! (from 1994).