DWP overpayment regarding Credit Reference Agencies, Debt Collection Agencies and Statute Barred

[CheesyOff]

I've been wandering around the site, and have a question/s and they kind of cover various subjects

 

Statute barred debts do not appear on CRA's - is that correct?

Only debts that are currently enforceable should appear on CRA's. When they become statute barred they come off CRA's

 

When someone has DWP overpayment debt, do they appear on CRA's? - I know there is this whole thing of whether they can be statute barred, or not, or that they can behave different to other statute barred debts.. as they can take money from you when you next claim any benefit.

But surely, if it can be statute barred, then the DWP when using DCA's should be obeying to all the rules.. not harassing people, make threats, being misleading etc.. as in what DWP is one thing (being a government department and what DCA can do is another).

[marmaris30]

The Statute Bar only limits enforcement of contracts through the courts. The debt remains owing and could be set off against other assets held in the same banking group, for example, and they can continue to take other reasonable steps to collect.

 

As for DWP overpayments, if it was due to fraud then it would remain legally enforceable forever. Otherwise it could be set against future benefits, but if they took legal action then I believe they would need to do so within the period set by statute.

 

As for CRA files, records last six years, which is the same time allowed to enforce debts in England and Wales before they become statute barred. So unless a creditor keeps reporting the defaulted status of an account each month, it eventually drops off the file. That doesn't mean it's been completely forgotten though!

[CheesyOff]

So a DWP overpayment is debt, if I check all 3 CRA's and the DWP is not on there.. It might be statute barred? and therefore, any DCA's acting for them can't do a letter's saying ' A CCJ may be issued" as legally the DWP ran out of time to do this.

 

If the DWP take money from the benefit, after the statute barred period surely this wrong, considering that the debt is unenforceable?

 

I am aware that debts do still exist beyond the statute barred period, but the fact is they should not be making misleading allegations, that they have power to do things when they don't.

[marmaris30]

The presence of CRA information is irrelevant because this isn't the evidence needed to secure repayment of debt, it's there to help lenders assess the risk of lending to a given person.

 

DWP overpayments don't appear on CRA files anyway, but CCJs do. They will get a CCJ if it's been less than six years since the overpayment, or the last repayment you made.

 

As I said, statute barred does not prevent the same creditor setting off the debt against other money with the same organisation. So benefit repayments can and will be clawed back from future benefits without limit. You can argue that it's unfair, and they might accept that argument, but in law, unenforceable only means unenforceable through the Courts.

[CheesyOff]

I think the information being on a CRA is very relevant..as it may affect more than just future lenders to assess the situation, beside's the fact that if it were on there it could be on for a long time up to 6 years.

Is that a fact, that DWP overpayments don't appear on CRA's? Well I think its bizarre, if they don't appear on a CRA.

I am aware CCJ's do appear on CRA's.. but I also aware that DCA's like to intimidate, and use language that is threatening, and misleading. So quite frankly its hard to know when they are telling the truth and when they are just trying it on.. Which must the reason, they have to be regulated. This is why I wish to ask these questions, as you don't get straight answers. When these are important issues.

[marmaris30]

I would certainly agree that DCAs lie and cheat their way in business and that it must stop!

 

But the DWP wouldn't report overpayment debt to a CRA because it's not consumer credit. If I'd lent you £1000 then I wouldn't be able to report it to a CRA either, and the Student Loans Company is another example.

 

Is there a specific benefit overpayment situation that people can try to help with, or is this just general curiosity?

[CheesyOff]

Its both actually,

curiosity as well as DWP overpayment (that by the way wasn't fraud).

I was out of the country for several years..

I returned, have had to claim JSA,

and the first I knew of it was when they decided to take it out of that.

 

I am currently going through the CRA's to sort my life out, as in be good, apply for jobs, get back on track again.

 

I came off JSA last year for a bit as I was studying for a new career.

 

While that happened I received letters & a call from IQOR,

I explained I was receiving no money.

 

Now, I have a letter/s from 'gpb' solicitors acting on behalf of IQOR for the DWP overpayment saying 'pending legal action' and that I MAY get a CCJ.

 

Well, I have just signed back on JSA, as my course finished.. and pased

 

So I am looking for job, or could possibly be self-employed so naturally I do not wish to have a CCJ.

 

I've checked 2 CRA's and nothing is mentioned on there about this DWP overpayment..

 

This overpayment for your info is from me claiming years back when I separated from my ex, and was unemployed, looking after the mortgage and my daughter

.. it was a mess, trying to sort payments from my ex, and trying to get work.

 

So, I am not trying to avoid any payments, just that I don't have money to pay.

.as I currently live with my parents.

 

I just wish to know MY RIGHTS, the facts, and then I can sort all this.

I know I am not the only person going through all this,

so I have been looking for info, and have written on for help and to hope it helps others as well.

[CheesyOff]

This overpayment happened in 2002/3 from income support payments to me at the time.

 

I do have the details of the overpayment from DWP.

 

I never knew anything of it until I returned to UK in 2010, and when I first heard of it I asked them for the details.

 

I am just checking when the first payments are that they have taken to see for sure if this is statute barred.

 

If it is, then I will know whether the DCA' (IQOR or their solicitors gpb) were lying.

 

If they were not lying, then I need to send a letter asap to 'gpb'

[victoria_siempre]

Hi Cheesy

 

DWP debts are a bit of a hot potato; in practice, they can reclaim them from any future benefits claim but again, in practice, sell unenforceable old ones on to DCAs (to whom, as dx so wise fully says, one never pays a bean).

 

Nobody obeys any rules, so it's best, in my experience to let sleeping dogs lie and minimise your existance to the knowledge of their computers.

 

love

 

vic

[Bazooka Boo]

All DWP over payments that have been made to me due to their admin errors, have never appeared on my credit file.

[CheesyOff]

I have just called DWP Debt Management - To say I am claiming benefit and that I had not paid before as I was not in receipt of ANY income as I had been a student for the last year. He asked whether IQOR had been in touch, I said 'yes' but that I do not want to deal with them as they are DCA's which are liar's and untrustworthy.. He laughed, and said thats fine.. he said to ignore any letters from them and that he would sort it so that the payments would come from benefit when it starts. I'll never know if this debt is statute barred, or if IQOR were lying. I had to claim benefit to look for work anyway so the fact that I have called will mean any possible CCJ will not happen. Incidentally it would be statute barred from the date the overpayment was recognised by DWP in my case that is 2004, I claimed benefit in 2010.. so there is a possibility its not statute barred in my case, by a few months. As my CRA's are clean.. I do not want any CCJ's on them for the next 6 years. For anyone reading, DWP OVERPAYMENTS can be statute barred, but if you ever need to claim benefit.. they will take a percentage from your benefit anyway. It just means if your past the 6 years they can't put a CCJ on your CRA.

[victoria_siempre]

Hi again Cheesy

 

A SBed debt can be pursued through a non-legal process. DWP will pursue via direct deductions from future payments (in the absence of a DRO or Bankruptcy); that is what I meant by 'hot potato'.

 

My comment on laying low still stands.

 

x

 

v

Edited August 15, 2012 by victoria_siempre
typo

[CheesyOff]

Thank you for your help.. It would be lovely for me to disappear abroad again for a few years.. however thats not possible at the moment. DWP, will be paying themselves with me claiming benefit. the only time it will hurt is when I get a decent job.. but as I will need to do another year of studies, I can't see that happening soon. It will only be low paid or not paid jobs for experience gained. I am living at my parents house, so I want to minimise those lovely DCA's coming to their house, and phoning me. Thanks to you truly wonderful wise people , I've sent the letters to DCA's saying they can only write to me. (I wish they wouldn't - but you know how it is, they can't bare not to have contact) I feel the weight slowly being lifted from my shoulders.. and I just might be able to sleep tonight. xx

[marcander]

Just to clear up a few points.

And I have personal experience of this.

 

Cra s are exactly that..

..Credit Reference Agencies.

If the "debt" is not/was not ...credit....then it cannot be reported on a credit reference agency file because it is not credit.

 

So... a debt to, for instance DWP was at no time a loan or credit

( I am talking here about income support and the like, regular weekly or monthly benefit payments not a crisis loan or anything like that)

and so although it is a debt it was at no point credit.

 

Also, credit reference agencies have to abide by the guidance of the OFT and the Information Commissioner's office and that states, quite clearly,

"All reference to a defaulted debt must be removed from the credit files 6 years after the date of default."

 

This is the case whether paid off completely or not at all.

 

This is so that someone who pays something and still owes after 6 years is not disadvantaged by someone who cannot

or does not pay anything and has the debt removed from the files after 6 years.

 

Statute barred i.e. debts for which there has been "no communication between creditor and debtor"

for 6 years are automatically removed from all credit ref agencies once they are statute barred.

 

Both "statute barred" and "over 6 years from default" debts cannot ever be re-entered on your credit files. If they are ......complain.

 

I have done it......and they were removed.

 

I am fighting a county court claim at the moment by a company that bought my debt

I have been paying an informal arrangement for the last 10 years to a DCA but no records, statements or copy Consumer credit agreement have ever been supplied.

 

They had some black marks references to the debt put on my CRA files.

I had them removed with one email/phonecall.

 

Don't give up.

 

M.

[Bazooka Boo]

I have been paying an informal arrangement for the last 10 years to a DCA but no records, statements or copy Consumer credit agreement have ever been supplied.

 

Then you are being mugged and are they're cash cow, why are you paying a powerless DCA anyway?

[marcander]

Then you are being mugged and are they're cash cow, why are you paying a powerless DCA anyway?

 

 

Because, until recently I wasn't aware of CCA regs etc. I stopped paying beginning of last year when they could not comply with my CCA request. The debt has gone from Eggg to Moorcrooft then to Barclayys now to Arroow global who started court claim in February this year thru Bryann Cartter solicitors. Then Bryan carrter stopped dealing with the case and they are dealing with it through the legal admin staff, "paralegal".

 

I am defending the claim with the help of the forum on another thread.

 

But, going back to the op, my crdit files were a mess until exactly 6 years after default dates when everything dropped off. No reference to any defaulted debts can be made on CRA files after 6 years, paid or not.

 

M.

[CheesyOff]

Hi,

 

Once, again I am being pursued by a DCA for the DWP. This time its Akinika, formerly IQor. I've now finished all my studies. For a brief period I was on JSA, after finishing my course. But luckily I've now found a job and started work.

 

The other day the DCA phoned my parents house (where I live, but not my phone). I've now received a letter from the DCA, saying they want me to call them "so that we can confirm your liability for this overdue account. Once we have confirmed your liability, our Collection Agents will be able to assess your financial circumstances and agree with you a solution that suits all parties.

 

Apparently if I do not take action to resolve this matter immediately they may instruct their solicitors to commence legal proceedings against me. Which according to them can result in a judgement/decree being recorded against me!

 

Also they say they may instruct a doorstep collector to visit me at my home to discuss my financial cicumstances and agree terms of repayments regarding my outstanding debt.

 

 

I called DWP today, to speak about the matter and they wouldn't saying they had passed the debt to the DCA and it was for me to deal with them!!! I don't like DCA's , as they are nothing but bullyboy liars, and will not pay them a penny! But can you advise me what i should write to them PLEASE:!: I do not want them phoning my parents house, or want them turning up! The debt is from 2002-2003 from an overpayment from Income Support.. Its not an amount I can pay in one lump sum. The only payments that have been made to the debt, have been when I claimed JSA and they took that money from source.. It was never money i have paid to DWP, or to any DCA. I have the paperwork from DWP proving, I owe the money. But I dare say the DCA doesn't have this paperwork.

 

Please advise, I know you guys give the best advise.. thanks..

[dx100uk]

ignore the DCA totally

 

the debt is STATUTE BARRED

 

the only people that 'could' claw it back' is the DWP from benefits.

 

they can do NOTHING TO YOU>

 

ignore IQOR

 

dx

[CheesyOff]

Hi dx100uk,

 

Thanks for your reply

 

I would ignore the DCA, but unfortunately my parents are the ones receiving the phone call..

because the DCA is calling their landline.

I am at work, when this happens.

 

My parents, (pensioners) worry about the effect this will have on them.

 

As in a debt on their address, and affecting their credit rating, etc..

 

I do not want any DCA turning up and intimidating my parents,

especially my father who is likely to get annoyed, and not a well man..

 

Can I not write to the DCA telling they can only write to me.

. not call, or turn up at my parents house?

[dx100uk]

a DWP DEBT IS NOT RECORDED ON ANYONES CRA FILE

there is NO SUCH THING as a 'blacklisted address'

 

tell you parents to put the phone down after saying

in writing only please.

 

if they continue to phone.

 

sent the harassment letters.

 

dx

[45002]

Mistaken post

Edited June 26, 2013 by 45002

[CheesyOff]

Hi, Today I receive a letter from 'gpb solicitors llp' Stating they have been instructed by 'Akinika' to recover the debt. They want full payment within 10 days otherwise a County Court Claim may be issued without further warning! &If the claim is issued the total amount will have court fee's added as well as solicitors fee's adding in effect another £165!!!

 

They are also saying that if they get the Judgement it will affect my Credit file, as well as sending a county court bailiff, and adding a Attachment Earning's Order to my employers..

 

This is all from a DWP overpayment from 2002 & 2003.

 

Whilst this may be a lot of hot air, I need to obviously respond to them to stop all these threats, and to stop them from calling my parents home phone number, as well possibly turning up at the door whilst I am at work. I am aware that the government will take this money from any benefit that I claim in the future, unless I pay them back before that happens..ie before I retire, or if I become unemployed. Advice please!

[dx100uk]

time for a brig letter me thinks

 

dx

[dx100uk]

paging the brig now

 

dx

[BRIGADIER2JCS]

Hi Looking in as requested by dx.