DEA On A Debt I Have Been Paying?

[Peepo]

I have been paying off a social loan I had many years ago at £1 per week.

 

I am working but my finances are at breaking point & that is all I can afford.

 

Now the DWP have sent me a letter saying they have contacted my employer & asking for them to take money out of my wages based on a percentage.

(I feel this letter was a scare tactic to get me on the phone)

 

I called up DWP to question this and was told although I was making payments there was no official payment plan in place,

and they would not accept any less that £60 per month.

 

Firstly how can the government take money out of my wages without knowing anything about my financial circumstances?

 

Secondly how can they do this when I was paying the debt?

 

Thirdly how can they force me to make payments that will cause me financial hardship?

 

I cannot afford £60 per month.

How can I reduce the payment amount?

 

The woman on the phone would not budge.

 

I am paying so many debts and trying to get my life back on track but they just keep piling on.

 

 

I had a nervous breakdown due to debt a few years ago and am starting to feel again like I cant carry on. I take 1 step forwards 2 steps back.

[Conniff]

Are you paying off the debts in a priority order peepo ?

 

 

Would you like to list the debts ?

[Peepo]

Hi,

 

Priorities are subjective.

 

 

But I assume the government has some list somewhere that tells me what my debt priorities are.

 

 

I am sick of the government telling me how much money I need to live on, how much they can take from my wages,

how much debt they consider to be financial hardship.

 

I am capable of working out my finances I dont need them deciding this for me.

 

 

If I tell them I cannot afford £60 per month then I cannot afford it.

[dx100uk]

tell us about this DWP debt

 

 

when was the social loan taken out

and what other debts are you paying off

if these are mobile phone

Payday loan

credit cards etc etc

drop them to £1 PCM

get this one sorted

[Conniff]

Priorities as in unsecured debts, council tax etc.

 

 

....they would not accept....

 

 

You need to ask whoever you spoke to on the phone who are 'they' and where is this written down.

[Madamfluff]

I think the first thing you should do is contact a debt management agency like http://www.stepchange.org/?WT.srch=1&WT.mc_id=270049&WT.seg_1=step%20change&gclid=CjwKEAjwjpeqBRCDiKqliK2aiicSJAAgKD2FVo4cg7G3tSOYjtvmL3AreAbeUtTzSdaURVIUIbZeihoCOKbw_wcB

 

 

You say that you are capable of working out your finances without help but if as you say your debts are piling up and you may have another nervous breakdown then it really looks like you actually do need help.

 

 

The DWP have told you that you had no official payment plan in place when you were only paying £1 a week and that's what you should have done instead of just deciding to pay the bare minimum and hope they would accept this, its not a case of you just stating if I say I cant afford it then I cant - end off, its up to you to PROVE you cant afford it and yes the Government CAN tell you how much you need to live on, they do this all the time when assessing people for means tested benefits.

 

 

The bottom line is that any money owed to the tax payer ( which as you work I presume includes you) via the DWP for loan repayments or benefit overpayments has to be a priority and has to be paid back.

 

 

Step change and other debt charities have extensive knowledge of all types of debt including debts to the Government and are in the best position to help you.

 

 

Now of course it WILL mean you providing them will a full income and outgoings report with every penny accounted for and will mean you have to give them some control of your finances BUT I don't think you have much choice and I think it would be the best thing you can do.

 

 

Good Luck

[Sparks_]

If this lady has been paying £1 a week for years and the DWP has not said anything over this time then can this not be said to be an official payment plan?

 

How much is left to pay off? Have they sent you an up to date account showing yopur payments and what is left to pay?

[Madamfluff]

If this lady has been paying £1 a week for years and the DWP has not said anything over this time then can this not be said to be an official payment plan?

 

How much is left to pay off? Have they sent you an up to date account showing yopur payments and what is left to pay?

 

 

Unless the DWP has agreed that the OP can only afford to pay £1 a week after having sight of all her incomings and outgoings then its not an official payment plan, it maybe a payment they have 'accepted' until now, but it seems that better communication between departments, data matching and the like have enabled the DWP to better pursue proper payments (which is about time IMO) also although she says she took out the loan years ago we have no way of knowing she has been paying her £1 a week for years, that just an assumption

 

 

If the OP is really unable to pay more that then she needs to prove it she cant expect them to just take her word that she cant pay.

 

 

If she does not know how much she owes and how much she has paid and they haven't actually told her then yes she needs to find out maybe via a subject access request.

[**Margaret**]

:Peepo:

 

A combination of the Welfare Reform Act 2012 and improved links between Government computers allows Government departments to recover money owed to them via a 'direct earnings attachment', without going to court. Although £1.00 per week, or month, is common for other debts ( catalogue accounts, credit cards, etcetera) it doesn't work for Government debts. And almost certainly wasn't agreed to by Work n Pensions who can recover debt at any time, even from benefits.

 

Here's a Government publication. It's aimed at employers, but is also useful for employees such as yourself. Among other info, it explains priority orders (but not priority debts such as mortgage/rent, council tax, etcetera) how the amount of an attachment order is calculated and the procedure for an employee who disagrees.

 

https://www.gov.uk/government/publications/direct-earnings-attachments-an-employers-guide

 

'They' are DWP Debt Management. Like another contributor to this thread, and to protect your mental health, I think you should seek advice from a debt charity.

 

Sincerely, Margaret.

 

 

[Peepo]

Hi, I find it interesting that you assumed I was a woman? I am actually a man.

Thanks

[Conniff]

Hi Peepo, if you are just posting to get it off your chest, then that is ok, it's good to have a rant now and then. If you need help however, please list your debts and you will be given help which will include advice on how to reclaim any payments you have made that didn't have to be made and any penalty charges that might have been wrongly added.