Housing Benefit Overpayment

[Rozalind]

Hi can you help me, regarding an invoice dating back to 2011 for overpayment 10,407.00. I did not get the letter regarding the overpayment until last year.

Last week the council sent me a text message on my phone saying I shouldn't ignore the message. Shall I call them ? im claiming UC since March as I lost my job, due to covid 19. I don't know what to do.

I was interviewed at the time and took a solicitor with me.
I also don't
think I owe them the money.

Thank you

[islandgirl]

I have had people in court for overclaiming benefits which is a criminal offence in certain circumstances so do not ignore the letter. Get everything cleared up. Explain (with evidence) why you do not owe the money. I would not call but write (email or letter) to keep everything as evidence. But wait to hear from other perople here as I only see one side of things - the timescale may be important I am unsure. But one thing is certain - if the text is genuine do not ignore it - however is it not strange for them to text you and not write?

[Rozalind]

Thanks VIP member for your prompt reply.

I do not have any evidence so its my word against theres and am sure I will loose.

I am on UC if i write to them and offer to pay off the overpayment it would only be a very small amount, would they accept a really small amount. Can anyone help me draft a letter I will put my foot in it if I have to do it myself.

[islandgirl]

Hi - I am sure somone here can do so and will be along soon however paying it back (if owed) does not remove the possibility of prosecution. We are often told that someone is paying back in mitigation before we sentence. A lot depends on why the overpayment occured (if it did). Was it an honest mistake or misunderstanding or deliberate fraud. Any letter would have to stress why it was the former (or why you do not think there has been an over payment and what you relied upon to make that judgement).
Edited because that did sound too worrying - I was just trying to stress that if this is a genuine communication from the council don't ignore it. If it was a mistake then it is very unlikely to end up in court. Wait for some benefits experts to come along and help you but don't ignore it (if the text is genuine)

[ploddertom]

Why has it taken so long for them?

[des8]

You state you were interviewed at the time and took a solicitor with you.

When was that interview (date please)
Was that interview under caution?
What was the outcome of that interview?
Have you or your solicitor any notes pertaining to that interview?

[Rozalind]

I dont know why it has taken so long. After the interview which was a no comment interview the solicitor said she would be in touch.

I never heard from her again. I moved to another address where I live now all my post was forwarded to this address and I never received anything from the council or the solicitor.

I cant remember who the solicitor was it was so long ago and only met her on the day and never saw her again.

When the interview ended the council said they would make a decision and that was how it was left.

On this invoice that I received last autumn its dated 5th December 2011 and has two different addresses on it, the door no's are different the one i am living at now and another door number.

I have two letters and an invoice now asking me to pay the full amount or I will get a CCJ against me, and I should contact the Debt Management Team.

All the money they say I owed was paid to my landlord at the time, every penny but I had to move out for about 6 months due to having to look after a family member so let a couple of my sons friends rent it out as I intended to move back but found other accommodation so went their.

Its very distressing, I dont have the money

[des8]

If you haven't paid anything, or acknowledged the debt for over 6 years I don't believe they can initiate civil county court action, so no CCJ.
https://assets.publishing.service.go...opg-courts.pdf

(If they think it was deliberate fraud on your part you could be charged in the magistrates court, but hard questions might be asked about the delay.
islandgirl will know more about that)

However an overpayment can be recovered from your benefits, but the amount of the deduction per week is limited (can't remember the percentage)

[ploddertom]

I have a sneaking suspicion that time will play its part here. The Council can ask for their money and yes you probably do have to pay it but having left it so long they probably cannot apply for a CCJ unless they can provide due cause as to why - did they continue to write, chase or ask for the money during this time or has this slipped through the net and only reared its head as an aged debt.

[Rozalind]

Thank you DES8

In the body of the first letter dated 2019 it says:

Unless payment is received within seven days, the Council may apply for a county court judgement against you. This will result in costs and interests being added to your debt and the county court judgement would seriously affect your ability to obtain credit. That's 8 years after the assessment, are they lying ? so confused as to the law.

[des8]

The council want a reply... so reply by letter sent 1st signed for.

I don't know enough about the background to your claim, but suggest you write
1. dispute that you owe anything, and request they prove their claim.
Point out that as you are disputing the matter they should, according to the guidelines, put all collection activities on hold
2. point out that as the alleged debt is over 6 years old, it is statute barred by reason of the Limitation Act.1980 sec 9
You therefore regard the threat of obtaining a CCJ as unwarranted and even bullying


As said previously, IF there is an actual overpayment, they can only obtain repayment by deduction from certain benefits, and the amount of the deduction is quite limited. So don't over worry, but also don't ignore

[Rozalind]

Hi DES8,

Thank you but I am still worried that if I write to them it will open up a can of worms and as I can only offer a small amount to pay, they will not accept my offer ?

[des8]

If you don't contact them, although they shouldn't, they will go to court.

Write to them as per post 11 and if you eventually agree you were overpaid, then negotiate a repayment plan.
As your interview was under caution I assume you were accused of fraud or not notifying a change of circumstances.
If you believe this was wrong, argue the point, because if the overpayment was their mistake you are in a much stronger position

If you don't negotiate and hide your head in the sand they will take the maximum possible from your benefits

[Rozalind]

Thank you Des8,

I have read the letter and invoice again it just says they want me to make a payment or agree an arranged payment.
If they agree to my offer of payment, can I get a solicitor later on when I find employment to fight the overpayment amount as it all went to my landlord and if they had contacted the landlord they would have known this ?

[islandgirl]

In my opinion you have little chance of doing anything in court. You should write to them with proof if you believe the debt is unjustified. You have to fight this yourself. The thing is if it went to your LL to cover legitimate rent (and it seems you kept the house rented from the LL even though other people moved in) you will be I believe liable for the debt. I can see why you were interviewed under caution - you were I think claiming HB whilst not living in the property. Presumably the people there paid you rent? The circumstances are probably complex. I would set everything out in detail and include anything you think justifies your HB claim in your offer letter and of course follow the advice of DES8 above. You can say you are making an offer under protest to hold off action and you expect the money to be returned when you prove you are correct.