WTC Overpayment **Urgent**

[bart70]

Back in 2006 tax credits lost our claim and we had to wait 4 months for them to sort it out... So after lots of phone calls and letters we got it back dated for the whole 4 months... Now they just sent a load giros which amounted to around £3000... Before we cashed them we rang to make sure they were the right amounts and they were ok to cash... They confirmed that yes it was the missed payments and under payments..

 

Fast forward to now... Letter from Tax credits claiming a overpayment on WTC for £450... After much head serching i pinned the amount to the giros.... Also got a letter from Advantis DCA... So I sent the standard over 6 years old statue barred letter.

 

They rang the Mrs this morning telling her it can't be barred and she needs to get a loan or credit card to pay the amount in full... She explained that I deal with the money side and was in bed due to working late... He tried to find out how much we earn/ do we have savings etc....

 

The guy is ringing back at 11am to speak to me... I never deal with DCA's on the phone but after what he has said this morning I'm fuming..

 

Any advice/facts that I can throw at him when he rings back would be useful... In the meantime I'm going to appeal against the amount as I now understand you can't statue bar tax credits...

 

Thanks in advance for any help.

[Mr.P]

Instruct the DCA to go forth - They have no powers, legal or otherwise to collect this overpayment. Only deal with HMRC.

 

Contact HMRC and ask for a breakdown of the amount "owed", what period it covers, and how they arrived at this figure. You could also send them a Subject Access Request (I don't think they charge for a SAR). When the file appears, go through it with a fine toothcombe and pull out any evidence to support a claim of "official error". With that in hand, you will be in a position to appeal the overpayment.

 

In the meantime, stay off the phone to Advantis and demand that all communication is in writing only.

[bart70]

Ok thank you very much.... I will be very nice when he rings back in 15min.... I promise lol

[citizenB]

Whilst they will not be able to make a claim through the courts, they can recover this amount from other benefits at a later date.

 

Once you have established from HMRC what this overpayment is, then you can make arrangements to pay them direct.

 

You do not have to deal with the DCA and they need to be reported to the Financial Ombudsman for advising you to take out loans or borrow from friends and family.

[Mr.P]

You do not have to deal with the DCA and they need to be reported to the Financial Ombudsman for advising you to take out loans or borrow from friends and family.

 

Indeed. DCAs are not financial advisers and have no authority to offer "advice" in such matters. One is under no obligation to discuss earnings, savings, and expenditure with these people and they have no rights in asking for this information.

[bart70]

Short update:

 

Advantis and HMRC have informed me that indeed the debt is not enforceable through the legal action but Advantis have said and I quote "We will carry on with sending letter to enforce payment" In other words they will carry on wasting taxpayers money sending pointless letters..... However today I received a interesting letter from them that I feel needs to be highlighted and maybe even action taken....

 

The part of the letter reads:

 

Failure to contact us to make arrangements to pay your debt may lead to us recommending to HM Revenue & Customs that they commence non payment of tax enforcement action which may include:

 

A local agent visiting your property to collect payment

Legal proceedings being taken against you

 

Standard crap in the form of empty threats but they are trying to say that this is a TAX debt for which different rules apply... misleading would be a understatement.

 

I'm starting to wonder what action to take... After trying to get my wife to take out a bank loan etc and now implying that the debt is in fact a Tax debt when it is not and they are fully aware of what the debt is.... Something needs to be done before they give some poor soul a heart attack.

[bart70]

Advice needed:

 

Another letter from Advantis landed this morning informing me that If I don't pay this statue barred debt, then a agent from HMRC will without notice call at my address and if not paid seize my possessions and sell them at auction!!!!

 

They have admitted to me that the debt is indeed statue barred and that they are unable to take legal action. But I was under the impression that HMRC only had the power to seize goods if the debt was for Tax....

 

Is anyone able to confirm this?

[blondebubbles]

There is info about recovery methods here - http://www.revenuebenefits.org.uk/tax-credits/guidance/how-to-deal-with-hmrc/dealing-with-debt/#enforcement

 

And here - http://www.hmrc.gov.uk/manuals/dmbmanual/dmbm595080.htm

[Mr.P]

I'm starting to wonder what action to take... After trying to get my wife to take out a bank loan etc and now implying that the debt is in fact a Tax debt when it is not and they are fully aware of what the debt is.... Something needs to be done before they give some poor soul a heart attack.

 

Perhaps it would be worth contacting your MP and getting him/her to raise some pointed questions with HMRC. Certainly worth sending a complaint to the FCA regarding the advice to "get a loan" from Advantis.

 

Now for a couple of questions:

 

 

1. Have you established with HMRC exactly how this "debt arose" ?
   
2. Do you agree with the figure being quoted ?
   

Even although this "debt" is statute barred, HMRC and/or their agents will continue to harass you for a repayment and deductions could be made by way of adjusting your tax code and/or taking it out of future benefits.