DWP claiming debt owed from 7 years ago help please?

[siennasmummy]

Hi

My husband had a crisis loan approx 8 years ago and he paid some off and then must have not paid in full. We moved house etc and now he has had a letter from the DWP demanding the remainder. He rang up and the lady said he last made a payment 7 years ago. Is this statute barred? Or does it not count if it was a loan from the social fund?

Also, he agreed to a £15 per month payment plan and set up a direct debit to start in Feb. However, upon checking his account, the direct debit set up says the company name is "CRG" nothing like HMRC or DWP does this sound ok as we are worried it may be a [problem] and do not know what to do. Please help.

[scotgal68]

CRG is central recovery group, part of DWP debt management x

[Bazooka Boo]

CANCEL the DD immediately!

 

This is SB, if he has not made a payment in the last 6 years, or a written admission then it is dead and buried, the only way in which they can get the money back now, is if he needs benefits in the future and they will then deduct it from that amount.

 

You will have to inform the bank that when this DD is cancelled that they are NOT to allow any funds to pay out to them without your express permission, and if you do decide to pay anything, then DO NOT use direct debit, you have zero control over this, you must always use standing order only.

[siennasmummy]

OK thanks, I wasn't sure how it stands with it being the DWP. Should he write to them explaining that it is statute barred? Or ring them again? Thanks

[leigh04]

By any chance is it DWP debt management that has written to you?

[siennasmummy]

Hi thanks for the reply, It could be DWP debt management yes. We want to stop the DD today really and then contact them to say we think it is statute barred but I'm not too sure how to go about it.

[leigh04]

Definitely stop the DD, you can make contact to say it's statute barred so no enforcement thru court can happen if you have made no payments or acknowledged it before now.

Any payments you would make now would be voluntary but please remember if in the future you have to go on benefits they will deduct overpayment from it.

My husbands in the same situation but we have agreed to pay ours a £5.00 a week by S.O and they were fine with it,they did threaten Dca's with us but husband stated that as ours was statute barred and its voluntary payment back until he needs benefits there's not much they could do and they basically agreed that he was correct.

[siennasmummy]

Ok I have just cancelled it and I am about to write up a letter to post off. Thanks so much for your help

[leigh04]

Good luck x

[Bazooka Boo]

Apologies, here is the SB letter to send, edit it to suit, but their is no great rush so if your unsure just ask, does the bank know that they are not to pay anything out of your account to the DWP?

 

http://www.consumeractiongroup.co.uk/forum/content.php?408-Letter-sent-when-debt-is-statute-barred