Just thought I would post an update on my saga. I received a letter last week confirming in black and white that I do not owe any money. I am now just waiting for a refund to come back for the money that was deducted out of my JSA. Still can't get over the fact that I've had to do all the donkey work with the DWP/Job Centre to get this sorted but I'm so glad I've got it in writing that I do not owe any money for the loan taken out in 1999. Once I've received my refund/credit that is owing, I will write another letter requesting consideration for compensation or something similar for all the stress caused. I hope no one else out there is having to put up with this same sort of situation but it's great knowing that websites like this can offer support and information to get matters like this resolved. Thank you again to those that posted a response to my thread.

Thank you so much for providing some feedback for me. Today, the Supervisor rang me back and sounded quite sympathetic regarding this ongoing issue especially with me being pregnant and having to deal with the added stress of something that I believe I shouldn't have to. Basically he wants me to get all the documentation I have sent to him so he can review it all. That would have been my next step anyway. Fingers crossed I'll get the right response from him once he's got all the relevant paperwork backing up my story. I had never heard of the 'Special Payment' you mentioned but I'll certainly look into that further. Many thanks.

Hello there. I'm hoping someone can give me some honest advice. Back in 1999 I was out of work and claiming JSA. At the time I also applied for a Social Fund loan. In 2002, whilst in full time employment, I received a letter from the Job Centre requesting that I paid back the loan. I did not have a problem with that and agreed to set up a standing order and make monthly payments. I made a final lump sum payment at the end of September 2003 and considered the loan paid off in full out of my hard earned wages. A few years later, I started receiving further letters stating that an amount was still outstanding. I queried it straight away and was told there must have been some confusion as the records showed I did not owe a penny. I thought that was the matter resolved. However, in February 2007, still in full time employment, I received another demanding I pay back this bloody debt. Clearly getting irate, I contacted the relevant office on the letter and spoke to a lady and gave her all the details of the payments I made and that they went to DWP Salford. I faxed her a covering letter and copies of my bank statements as proof of the payments. Again, it appeared nothing showed on their system and was told that nothing was outstanding. I was made redundant recently and began claiming Contribution Based JSA and was told by letter what I would get each week. This morning though....I received a letter from my local Job Centre saying they are taking £3.97 per week from my entitlements to cover the 'Social Loan'. The letter states a time period they will be taking these deductions but the weekly amount and the time scale do not add up to the outstanding debt(??). I spoke to someone there today explaining how frustrated I had become as I had previously provided documented bank statements showing all the payments I made to clear the orginal debt. I'm also fed up with the costs of all the phone calls. It's being looked into. I'm hoping a supervisor is going to call me tomorrow so I can give them a piece of my mind as this is becoming quite a headache. Worst part is, I will be signing off from JSA next week and claiming Maternity Allowance and am worried if this isn't sorted, I'm going to be deducted money from a fund I need for my baby that I am entitled to because I have recently came out work. It's money I've worked for. If anyone out there has some advice regarding what I can do or say in this situation I would be extremely greatful. Being pregnant and worrying about this is driving me up the wall and I can do without it. Thanks in advance.