Debt that should have been covered by Housing Benefit being chased

[jonnyk]

Hi,

 

A friend was receiving housing benefit paid directly to the housing association where she was living until April 2014, when she moved to private accommodation. 

 

She recently received a letter from a debt collection agency requesting payment for around £1200 due to unpaid rent from her time at the HA. 

 

This was the first letter that has been sent, and was out of the blue as rent at HA was all covered by housing benefit, and paid directly to HA. 

 

She sent a 'Prove It' letter to debt collector - they then sent back a schedule of rent / payments that showed housing benefit hadn't been paid by council for the last 3 months of her occupancy.  It also showed that during her time there, housing benefit was paid sporadically, so there might not be a payment for 3 months, and then 3 payments made in a week to cover this.

 

It looks like that the housing benefit was not paid on time by the council over the last 3 months of residency - and this has remained outstanding until now.  

 

She is now getting letters threatening bailiff attendance.

 

What advice should I give?

Any help much appreciated.

 

Kind regards,

JK

 

 

[dx100uk]

Who's the dca?

bet it doesn't say will anything if read CAREFULLY

[jonnyk]

UKSearch Limited

 

Sorry I'm not sure what you mean "bet it doesn't say will anything if read CAREFULLY".

 

Original letter states:  

 

"Dear XXXXX

 

Re: Debt Address: XXXXXX

Type of Debt: Former Tenant Arrears

 

UK Search act on behalf of our client XXXX who has instructed us to recover the amount of £XXXX, being owed to them under their reference above.  As you have not responded to earlier communications to clear this debt in a satisfactory way.  **There weren't any previous comms**

 

If you are unable to pay in full, call us immediately with your proposals for repayment.  We will consider repayment by installments, based on your individual circumstances.

 

If you do not respond to this letter within 7 days , we will need to escalate this matter to recover the debt on behalf of XXXX.  If you call us, we will explain this further."

 

 

Does that help?

[dx100uk]

As i said..it does NOT say WILL anything.

a dca is not a BAILIFF

and have

ZERO legal powers

and even less on a debt they do not own.

 

Until or unless your friend gets a letter of claim from a solicitor

they are safe to ignore everything.

 

Stuff and all they need to do ..

 

Dx

[stu007]

Hi

From your thread this seems to be the Housing Association that is taking this action against her.

 

Did she end her Tenancy giving the required Notice to the Housing Association?

 

Did she receive any Notice from the Housing Association (HA) or was she in a Payment Plan for the Rent Arrears?

 

If not to above then Formal Complaint to Housing Association and Title it as such. (in the letter ask for the following)

 

1. Rent and Service Charge Policy (not the leaflet)
2. Rent Arears Policy (not the leaflet)
3. Full Rent Statements From XX/XX/XXXX To Date.

 

(She needs to know is the Housing Association followed their own policies to progress it to this stage)

 

She also needs to send a Subject Access Request (SAR) to the Housing Association (HA) asking for 'ALL DATA'.

 

Please note what has been said in previous posts, a DCA in NOT a Bailiff and has No Legal Powers

[jonnyk]

Thanks Both.

 

I think required notice was given, and I don’t think there was any payment plan - just housing benefit being paid directly to HA without touching tenant.

 

Also conscious that the last overdue rent payment listed was April 14, so 5.5 years ago.  My understanding is that when the age of this debt extends to 6 years old, it becomes statute barred and unenforceable, providing it is not acknowledged...

 

I’m wondering whether it would be better to ignore the correspondence and hopefully this would not be escalated to bailiff, playing the waiting game until April 20, by which time there would be no way of legally chasing the debt?  Could there be a danger of engaging in further dialogue, which would jeopardise the statute barred timeline?

 

Many thanks,

 

JK

[unclebulgaria67]

Find out why Housing Benefit was not paid, by contacting Council. Perhaps if it could be paid by Council, there would be no debt ?

 

Yes hands could be sat on until statute barred, but it might end up in Court before the 6 years.

 

Better to find out what can be done.

 

 

[dx100uk]

have to get a CCJ to ever get bailiffs involved

and even then there is no right of  entry

so stop worrying.

[stu007]

Hi

 

Please stop worrying again a DCA has NO Legal Powers  and she is dealing with a DCA at present.

 

For Bailiffs to be involved it would have to be the Housing Association (HA) not the DCA that goes to court to get a CCJ (which she can defend if they do) before the HA can even think of getting Bailiffs involved.

 

As this supposed Debt is over 5yrs old I bet the Housing Association has written the Debt off on its Financial Statements & Accounts but it does not stop them trying to chase the debtor.

 

As previously said by others until she gets a Letter of Claim (if she does come back here for advice) I would just Ignore the DCA as they cant do anything as the Housing Association would need a CCJ and then wouldn't employ a DCA if they had one.