HMRC refusing to deal with overpayment, says must deal LCS

[map59]

In 2013 I had to give up work due to chronic ill health,

I notified HMRC of my changed circumstances and my tax credits claim ended.

 

Around six months later,

I received a letter from HMRC stating I had been over paid by £3,500.

I called them and after explaining my circumstances they agreed to suspend repayment,

they didn't say for how long, just to expect further contact in future.

I have since heard nothing from them.

 

About a month ago, out of the blue I received a letter from a debt collector agency called LCS demanding repayment,

 

I contacted HMRC and on asking why they had not contacted me directly,

I was told it was normal practice to pass debt over to a DCA who would then pass it back to them

on receiving proof of inability to pay and I could expect this to happen each year.

 

After receiving a further two threatening letters from LCS, the last being a “notice of further action”

I again contacted HMRC.

 

 

This time they claimed to have contacted me a number of times and as I had failed to respond

they had put recovery in the hands of LCS.

They flatly refused to deal with me saying I must deal only with LCS.

 

I have read posts on here advising never to contact a DCA.

I'm confused and anxious as to what I can to do if HMRC refuse to deal with it.

I'm very worried about this debt and its beginning to affect my already poor health.

 

I hope someone can advise me on the best course of action.

[honeybee13]

Hello and welcome to CAG.

 

I also thought you shouldn't deal with people like LCS. Possibly the HMRC person doesn't completely understand the position with debt collectors.

 

Hopefully someone who knows more than I do will be along later with advice for you.

 

My best, HB

[dx100uk]

totally correct

ignore the powerless DCA

they ARE NOT BAILIFFS

 

 

and can do nothing bar pester you.

 

 

deal with the HMRC, and if they wont

let them wave their arms around

 

 

might be an idea to send a free sar to HMRC

and check they are correct.

[map59]

Hi Honeybee,

Thank you for responding, I have contated HMRC three times now and spoken to three different people, each one flatly refused to discuss the debt and insist I contact LCS. I'm worried that HMRC will just take enforcement action next if I continue to ignore LCS

[map59]

Hi dx100uk,

Thank you for replying. I will look up the SAR procedure and send one off for all details they hold

[dx100uk]

stand your ground

theres not really a lot they can do bar take it from future benefits via them.

 

 

https://online.hmrc.gov.uk/shortforms/form/DPU_SAR

[map59]

Thank you so much dx100uk and honeybee13 for putting things in perspective. I had been worrying myself silly over this and the possible outcomes.

[TaxHero]

Hi The above advice is correct.

 

You should never contact the DCA no matter what they say.

 

The person you spoke to at HMRC is talking c**p.

 

They can take the debt back from the DCA at any time.

 

This is the standard line they adopt as quite a few people pay the DCA.

 

HMRC debt collection has several stages and the DCA is 2nd and is used when you have not responded to any letters. Quite often they dont send these or they are not received.

 

The DCA will annoy you for 6 months and then pass back to HMRC.

 

Then the Debt Management Team will take over.