DWP Budgeting Loan

[bridals]

Hi, hoping someone can help. We applied for a budgeting loan and got the letter through today offering us £748.60, with a repayment of £44.04 per week!!!

 

They say we already owe them £751.40...., which is definately not true! We had a couple of crisis loans last year while they messed about with our claim, the total we got altogether was £622, they've been taking payments for this since April, from looking at our bank statements, I've calculated we've paid about £124 back towards this, therefore we should only owe them £498.

 

I thought that the repayments were structured at either 5, 10 or 12% depending on your circumstances eg having/not having other debts. We clearly stated on the form that we already pay out a good amount monthly towards a loan.

 

And aren't they supposed to be repaid over 2 years..., if we were paying back £44.04 a week then that would only cover 28 and a bit weeks.

We have been offered another option of £210.97 paying back £12.41 a week, that works out repayment over 17 weeks.

 

Is it just me or have they lost the plot? We have two children, the repayment works out at 20% of our weekly 'income'..., they've totally ignored the fact we already pay other debts and added another £130 onto what they say we owe them already.

 

Anyone got any advice?

[backofbeyond]

I have just recently been paid a budgeting loan from the social - £810 and the repayment is £30 per week. I am not sure how they work it out tbh, I am sure someone more knowledgeable will be around shortly to offer you some advice.

[Rover87]

Not quite sure how it is worked out but you do have the option to write to them to ask them to review the figure. You would probably have to explain why you wanted to pay back a lower figure, and show that it is the most you could afford given your income.