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For a friend - non-existant HB overpayment

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  • For a friend - non-existant HB overpayment

    I've been helping out a friend for a few months with a supposed Housing Benefit overpayment issue from 2008/9 ... they've (so far) been corresponding with Birmingham City Council regarding the debt (which they have never acknowledged) and have had no luck whatsoever

    Now, I know that this person was in receipt of 100% CT benefit/rebate at the time this debt is meant to have occurred (and that there is no debt at all) and even if there was it would be SB'd/wrote off by the council by now anyway. However ... even tho' the debt is in dispute (I've got them to send SAR requests to both BCC and the DWP already) ... the council has now passed it to Moorcroft (see attached letter).

    Also, my friend has recently received a letter from BCC about a supposed credit on their old account (for previous Council Tax) of £15+ that the council are saying they are keeping in case she ever moves back to the county (they left in 2012)

    Questions:

    Do I sort out a letter to send to Moorcroft saying the debt is in dispute?
    Do I get my friend to put in a complaint at the council?
    Do I type up a SB'd letter to send to the council/Moorcroft (or both)?
    Do I get her to write to BCC requesting the £15+ to be paid into a bank account (she says he's never going back there)?

    ............................

    Additionally ... the Moorcroft letter refers to her as a "CURRENT TENANT". Do we tell them that she isn't??
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  • #2
    Re: For a friend - non-existant HB overpayment

    Having worked in this exact field for 23 years, I find it amazing that a local authority has actually passed an overpayment of housing benefit debt for the princely sum of £68 odd to a collection agency. On the surface, it should simply be written off. On the other hand, passing to a collection agency in this manner can still be the council's precursor to a write off and I cannot see any action ensuing for such an amount.

    Clearly the only negotiation to confirm the validity of the debt can only be done with the city council and the whole matter is made even crazier that the debt is 7/8 years old. IT may well be thought that 100% council tax benefit goes hand in hand with full housing benefit but that is not always the case as both are separate calculations using different levels of criteria. For the council to state that they are retaining a council tax credit to support future bills is inane and sensibly there should be no argument about setting this credit against the supposed HB overpayment.

    Frankly, I would submit an early complaint to the Revenue & Benefits Manager at BCC, clearly marked 'complaint' and for his specific attention , requesting a breakdown of how the alleged HB overpayment occurred and why it has taken so long to bring to resolution and of course why such a minor amount has been passed to collection agents and essentially why public money has been incurred in doing so. Also raise the issue of the ctax credit and why they feel it fit to retain in the way stated ( I have never ever heard of that! ) and in any event why it cannot be applied to the alleged HB overpayment. I believe retaining a tax payers money in this way is illegal and if not illegal, extremely immoral!

    Even when you work in the very departments that administer all of this, it can still be incredibly hard supporting debts of that age and the reasons for it. But if thet sincerely feel it's worth pursuing, then they must back it up with rhyme and reason!

    Comment


    • #3
      Re: For a friend - non-existant HB overpayment

      Originally posted by Kati View Post
      I've been helping out a friend for a few months with a supposed Housing Benefit overpayment issue from 2008/9 ... they've (so far) been corresponding with Birmingham City Council regarding the debt (which they have never acknowledged) and have had no luck whatsoever

      Now, I know that this person was in receipt of 100% CT benefit/rebate at the time this debt is meant to have occurred (and that there is no debt at all) and even if there was it would be SB'd/wrote off by the council by now anyway. However ... even tho' the debt is in dispute (I've got them to send SAR requests to both BCC and the DWP already) ... the council has now passed it to Moorcroft (see attached letter).

      Also, my friend has recently received a letter from BCC about a supposed credit on their old account (for previous Council Tax) of £15+ that the council are saying they are keeping in case she ever moves back to the county (they left in 2012)

      Questions:

      Do I sort out a letter to send to Moorcroft saying the debt is in dispute?
      Do I get my friend to put in a complaint at the council?
      Do I type up a SB'd letter to send to the council/Moorcroft (or both)?
      Do I get her to write to BCC requesting the £15+ to be paid into a bank account (she says he's never going back there)?

      ............................

      Additionally ... the Moorcroft letter refers to her as a "CURRENT TENANT". Do we tell them that she isn't??
      Moorcroft refer to the Council as their client (in the letter), so Moorcroft are merely the agents for the Council (who own the debt so to speak). Rather than contact Moorcroft who'll just threaten court action for the measly £68 approx., I would contact the council itself and say please provide me with a breakdown of the actual amounts. However, Moorcroft need to be informed of the situation by speaking to their account's manager. They can then put the account on hold until you sort it out. It would also say I am going to report this conduct by the council to the Local Government Ombudsman, as by passing the debt of £68 to debt collectors it could amount to a far worse detriment (for your friend), where Moorcroft's, its solicitors, any potential court, fees would be disproportionate to the amount owed. It is in my view a Wednesbury unreasonable case, Wednesbury is a case where a public authority's acts or omission was so bad that its decision was quashed.

      Comment


      • #4
        Re: For a friend - non-existant HB overpayment

        Originally posted by Snoopy1948 View Post
        Having worked in this exact field for 23 years, I find it amazing that a local authority has actually passed an overpayment of housing benefit debt for the princely sum of £68 odd to a collection agency. On the surface, it should simply be written off. On the other hand, passing to a collection agency in this manner can still be the council's precursor to a write off and I cannot see any action ensuing for such an amount.

        Frankly, I would submit an early complaint to the Revenue & Benefits Manager at BCC, clearly marked 'complaint' and for his specific attention , requesting a breakdown of how the alleged HB overpayment occurred and why it has taken so long to bring to resolution and of course why such a minor amount has been passed to collection agents !
        I would agree with what snoopy suggested here, complaint to the revenue and collections manager, the 2 keys are 1. Why have they taken so long to chase it, 2. what action did they take as soon as they realized it was an over-payment.

        For @Snoopy1948

        , I find it amazing that a local authority has actually passed an overpayment of housing benefit debt for the princely sum of £68
        Some councils legal and finance officers, realized they could change the accounting systems so that debts held with baillifs or collection agents, are lifted of the balance ledgers ( or classed as successfully collected ), until they are returned by the bailiffs to the council ( then they are written off ). There for, falsely inflating the successful collections rates. ( reported to the auditors every 13 weeks )

        Even worse councils, keep debts off there books for 4 years or more ( with baillifs ) , becuase after 4 years they dont have to report the re-adjusting to the books. ,
        crazy council ( as in local council,NELC ) as a member of the public, i don't get mad, i get even

        Comment

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