dwp asking for monet back after 12 years

[danwldr]

I recently received a letter from the DWP asking me to pay back £553.04 which was made up of crisis loans dating between 1998 and 2002, when I asked for information of these loans all they sent me was a breakdown of dates and amounts and the outstanding amount owed was actually £418.12. I can't believe after 12 years they can ask for this money back, I have been at my present address for over 5 years, I have worked for the last 7 years so its not as if I have been un-findable. What rights do they have in recovering this money and can they arrest my wages or bank account?

[joggerjayne]

You have their Monet ??

It's no wonder they want it back !!!!!!!!!!

[sara3]

I don't know but... a loan's a loan :o/

[factor-fiction]

There is no time limit on these DWP debts- unlike many debts these don't become 'statute barred'.
Yes they do seem to have been incompetent in leaving it this long, but I think the best you can hope for is to be allowed to repay it in instalments over maybe 12 months.
Did you know these loans would have to be repaid some day?

[SUSPECT]

Agree with Factor, With the DWP even if it was 20 years ago thay can claim it back.They do the same with Benefit overpayments.

[hindle-a]

You are not an MP are you?

[annie0000]

Maybe they will accept a Van Gogh in part payment?

[factor-fiction]

you could try offering £300 as a settlement figure but I can't see any reason why they would be prepared to accept anything less than the full amount. You are lucky they haven't charged you 12 years' interest

[ABerrant]

A couple of observations...

A recorded debt of £418.12 and a demand for £553.04 suggests that interest has been added.

DWP debts do become statute barred (i.e. are not enforceable through the courts) but this is irrelevant because they need not employ such enforcement. At some stage in the future you will approach them again for payment (e.g. benefits or pension) which they can and will reduce by the amount of the debt you owe them.

[factor-fiction]

Thanks for the clarification, Abberant. Yes, we were lazy with our explanation- Limitations Act does apply to DWP debts. The DWP has 6 years to take action through the courts to recover benefit overpayments and social fund loans, but I understand the clock starts ticking from the date the final decision is made on the overpayment. So has the six year clock only just started ticking? Anyway, if someone knows they owe money and have moved since the debt was incured are they under an obligation to notify the creditor of the address change?

Although danwlr doesn't give a breakdown you are probably right in saying the interest costs have already been added.

[DrFilth]

http://www.dwp.gov.uk...ists/debt-management/

[ummmm]

To be fair to Dan they are suppose to take the re payments from any benefits received at a minimal amount each week.

[Emily Ball]

You have admitted it was a 'crisis loan'. Presumably, as you have been working for some years the crisis is over. Where do you think this money comes from- a nameless faceless benefactor with money to burn? It comes from the British taxpayer, that's where! Bite the bullet and pay up for goodness sake!

[Emily Ball]

Or are you an aspiring parliamentarian by any chance?