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.