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Debt Relief Orders and Overpayment recovery


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From

HB/CTB U4/2010 28 July 2010

1 On Monday, 26 July 2010, a Judge in the Administrative Court ruled on Judicial Review that the Secretary of State does not have the right to recover overpayments of Social Security benefits and Social Fund loans by making deductions from an ongoing award of benefit when the debtor is subject to a Debt Relief Order (DRO). This decision will also apply to the recovery of overpayments of Housing Benefit (HB) and Council Tax Benefit (CTB), whether the local authority (LA) is recovering from HB, CTB or any Department for Work and Pensions (DWP) prescribed benefits.

2 DWP is studying the decision and its implications. Meanwhile, both the DWP and LAs must cease making deductions on cases where the overpayment was included in the DRO. They must also not commence deductions on any further overpayments which are included in a DRO.

3 We will be issuing further urgent guidance as soon as the decision has been fully assessed. This will include information on the provision of refunds and the position on Fraud overpayments.

4 This decision only applies to cases where a debtor is subject to a DRO. It does not, for example, have any effect on making deductions during the period of bankruptcy.

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Oooh - interesting. I can use this for some people - have you a link, Paul?

 

Thanks.

My advice is based on my opinion, my experience and my education. I do not profess to be an expert in any given field. If requested, I will provide a link where possible to relevant legislation or guidance, so that advice provided can be confirmed and I do encourage others to follow those links for their own peace of mind. Sometimes my advice is not what people necesserily want to hear, but I will advise on facts as I know them - although it may not be what a person wants to hear it helps to know where you stand. Advice on the internet should never be a substitute for advice from your own legal professional with full knowledge of your individual case.

 

 

Please do not seek, offer or produce advice on a consumer issue via private message; it is against

forum rules to advise via private message, therefore pm's requesting private advice will not receive a response.

(exceptions for prior authorisation)

 

 

 

 

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Hi Erika

Don't have a link as I downloaded it as a word document. I can email it to you but there doesn't seem a way to attach a file to a message? Not sure if site rules allow this? Let me know how best to get this to you.

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If you click "post reply", there should be a paperclip in the posts, next to your smiley face; this is how you attach docs to posts in the forum. Or if you prefer, I shall send my CAG email address so that you can forward it by email - I'd really appreciate it. This could help a lot of people that I deal with.

My advice is based on my opinion, my experience and my education. I do not profess to be an expert in any given field. If requested, I will provide a link where possible to relevant legislation or guidance, so that advice provided can be confirmed and I do encourage others to follow those links for their own peace of mind. Sometimes my advice is not what people necesserily want to hear, but I will advise on facts as I know them - although it may not be what a person wants to hear it helps to know where you stand. Advice on the internet should never be a substitute for advice from your own legal professional with full knowledge of your individual case.

 

 

Please do not seek, offer or produce advice on a consumer issue via private message; it is against

forum rules to advise via private message, therefore pm's requesting private advice will not receive a response.

(exceptions for prior authorisation)

 

 

 

 

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You're fab, Paul.

 

Thank you so much!

My advice is based on my opinion, my experience and my education. I do not profess to be an expert in any given field. If requested, I will provide a link where possible to relevant legislation or guidance, so that advice provided can be confirmed and I do encourage others to follow those links for their own peace of mind. Sometimes my advice is not what people necesserily want to hear, but I will advise on facts as I know them - although it may not be what a person wants to hear it helps to know where you stand. Advice on the internet should never be a substitute for advice from your own legal professional with full knowledge of your individual case.

 

 

Please do not seek, offer or produce advice on a consumer issue via private message; it is against

forum rules to advise via private message, therefore pm's requesting private advice will not receive a response.

(exceptions for prior authorisation)

 

 

 

 

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  • 3 years later...

There also seems to be some confusion regarding definition of "fraudulent overpayment". I never admitted that I committed fraud because I did not. I had no intention to claim money I wasn't entitled to, but I due to ignorance (it was first and only time I claimed) I did not notify about change in circumstances. I was clueless about the benefit law at that time and scared that I will end up in jail (! yep, I was terrified) I accepted the Admin. Penalty... Im now finding that acceptance of Admin. Penalty equals admitting fraud(?!)

So I don't want to make the same mistake and just not contact them in case this will again be treated as fraud (like omitting the responsibility). On the other hand, I was told all my debts will be written off after discharge... I just don't know what to do... I would be very grateful for any advise.

Thank you.

L

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