Social fund loan

[mrs.h-p]

Hi -
Please move this or direct me to other answer if I have missed a
Solution already being provided.

I took out a social fund loan for new baby items in 2006.... I started receiving benefits when my daughter was born in first 1/4 of 2006, as a single parent - I was I receipt of dwp benefits until last third of 2007.

I forgot about any outstanding loan until approx 2011 when I was advised by a debt support service (who I was in contact with on a professional basis) that if I had not heard from dwp they would just take it out of my pension (or any other claimed benefit)
- so not to worry. I was quite happy to defer payment to such time.

At the end of 2012 I received demands from both CTC (I received childcare contributions as a single parent studying a degree) and DWP requesting repayment .... I did not owe CTC (I know I notified of change of circs in good time) and wasnt sure of dwp figures - so requested Details from both.

CTC said I owed it full stop- no evidence or explanation and worried me so much that I paid it - even though I didn't owe it.

Dwp had to be chased for details and when I queried the amounts failed to communicate other than to repeat themselves - then silence for over a year.

This year the dwp sent standard letter out again, I wasnt earning - so I delayed reply ....as there was no deadline on letter.

I recently replied advising I was due to start work and so wanted to agree repayments.

They replied saying I couldn't - as they'd transferred it to Debt recovery agency.

I was never told they were going to and had never received contact from debt recovery agency.

Three days after the above reply from DWP I got a letter from debt recovery agency saying they had contacted me numerous times (they haven't even once) and are going to take legal action.

What can I do?

I want to make a payment arrangement with dwp now that i have a job offer

I do not want to deal with debt recovery agency

I don't want legal action

Thanks in advance for any direction you can give

[Kati]

Re: Social fund loan

just bumping this up for you so other Beagles will see it xx

[nemesis45]

Re: Social fund loan

Hi, " the debt collection agency acts within the complete control of the DWP,
their approach is supposed to be more " robust" than that of DWP Debt Management.

You are dealing with debt management by phone it's hopeless.

Inform the DCA that you will under no circumstances deal with them and
and are sending a repayment offer direct to the senior manager at DWP debt
management.
Send it by signed for post.

By way of assurance the DCA most certainly cannot take any court action, the debt is out of time for that.

nem

[mrs.h-p]

Re: Social fund loan

Thank you for the advice - can the debt management company take it from my new salary if they don't like the above actions? .... As I don't want a new employer to be embroiled in such things ?

[nemesis45]

Re: Social fund loan

Thank you for the advice - can the debt management company take it from my new salary if they don't like the above actions? .... As I don't want a new employer to be embroiled in such things ?

Hi, The DCA cannot take any action other than sending letters asking you to pay, any
other form of " collection" activity must be done by DWP debt management.

Unfortunately should this progress to an AOE an employer as said cannot refuse to act
upon the order.

Include in your letter to DWP DM that an AOE may/will have an
impact on you employment as you have only just started.

nem

- - - Updated - - -

Thank you for the advice - can the debt management company take it from my new salary if they don't like the above actions? .... As I don't want a new employer to be embroiled in such things ?

Hi, The DCA cannot take any action other than sending letters asking you to pay, any
other form of " collection" activity must be done by DWP debt management.

Unfortunately should this progress to an AOE an employer as said cannot refuse to act
upon the order.

Include in your letter to DWP DM that an AOE may/will have an
impact on you employment as you have only just started.

nem

- - - Updated - - -

Thank you for the advice - can the debt management company take it from my new salary if they don't like the above actions? .... As I don't want a new employer to be embroiled in such things ?

Hi, The DCA cannot take any action other than sending letters asking you to pay, any
other form of " collection" activity must be done by DWP debt management.

Unfortunately should this progress to an AOE an employer as said cannot refuse to act
upon the order.

Include in your letter to DWP DM that an AOE may/will have an
impact on you employment as you have only just started.

nem

[FlamingParrot]

Re: Social fund loan

Thank you for the advice - can the debt management company take it from my new salary if they don't like the above actions? .... As I don't want a new employer to be embroiled in such things ?

Debt collectors have no authority to request a Direct Earnings Attachment from your employer.

I have been chased by a number of debt collectors over an alleged overpayment of working tax credits which I asked the tax people to prove with a statement or a breakdown and they did not provide me with one. This dates back to the period 2010-2011. All they did was send a letter saying they were not going to write it off and unleash yet another DCA. I wrote to the DCAs of turn about the dispute, they all did the usual, i.e. send letters and texts, then just gave up and I've not heard from anyone for nearly a year now.

Although in principle the government have authority to recover debts using various methods (DEA being one of them), without the need for a court order, that power is not transferred to debt collectors. By appointing debt collectors they effectively lose the ability to use more drastic methods of recovery. In my case I was told the tax people would no longer correspond with me and I should deal directly with whoever they'd appointed at the time. I did by sending one letter then ignoring the rest of their communications. The alleged overpayment seems to have got lost between the tax office and the DCAs. :tinysmile_kiss_t4:

[mrs.h-p]

Re: Social fund loan

Thank you - will follow advice today x

[nemesis45]

Re: Social fund loan

Thank you - will follow advice today x

Don't forget to mention the possible impact on your new employment!!

nem

- - - Updated - - -

Thank you - will follow advice today x

Don't forget to mention the possible impact on your new employment!!

nem