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Dwp & Crisis Loans. in The AnswerBank: Law
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Dwp & Crisis Loans.

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ummmm | 09:56 Wed 13th Mar 2013 | Law
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My nephew has received a letter from DWP about unpaid crisis loans. They amount to nearly £1,000. He hasn't taken these loans out.

He phoned them and was told by the advisor that the best course of action is to start paying them while it's being disputed. I've advised him not to because surely if he starts paying it off it's an admittance that he took them out?

My other question, how do you get a crisis loan? Can it be done over the phone? He has a feeling his father might have taken them out in his name (they have the same name) and as he lived with his father for a few months he may have got his details from any correspondence sent to that address, NI number I presume.

When one of these loans were taken out my nephew wasn't even living in this town!
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I am with you wouldn't start paying but think it would be a good idea to get some legal advice...maybe CAB as a first port of call.
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Just want to know how they can be applied for. Can it be done over the phone or do you have to go in in person?
I'm pretty sure one has to go into a Job Centre and already be known the DWP to get be considered for a Crisis Loan. Was your son claiming benefits? I hope uncle didn't claim other benefits in his name. The DWP will be able to see whose account the money went in to. He should refuse to pay and tell them to investigate where the payments went.
But am I right in saying your son has had loan repayment issues before though and taken them out in your name? Could he know more than he's telling you?
I think you have to fill in a form.
When I was in benefit a crisis loan had to be applied for by written submission....May be different now....but if not then it will be easily cleared up....then there is the matter of a fraud pursuance......that will surely follow by the dept and perhaps police...could get nasty between father and son
Sorry um- I may have got your relatives mixed up - it's father not uncle and nephew not son. Sorry
...and now I've got your name wrong, ummmm
Time to get my coat and get off to work!
It's just done over the phone now.
Takes about half an hour.
You do need your NI number (or as it would seem in this ase, his son's)
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Lol Factor, you have me mixed up with someone else.

Right, thats the first thing I'll tell him to do is ask what account the money was paid into. That should more or less clear things up.

He wasn't working at the time the loans were applied for and hadn't long moved so all correspondence was still going to his fathers house.

He's working now and has been for the last 18 months, he also doesn't have a problem repaying money he owes, so I really can't see that he'd be lying, also, he didn't even need to tell me about them if it were him.
Albs if that's the case nowadays the destination of payments will determine who made application based on the assumption it went to an account....but even if by giro clearing system can establish who and where as well as when cashed it...seems a very loose system nowadays...
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Thanks, Alba.

That would make sense then because any letters from DWP going to his dads address would also have my nephews NI number on them.

His dad has a history of taking out crisis loans (he gambles) but now he's working he can't claim them, so I bet he's gambled his money and applied in my nephews name.
Yes, once again, apologies ummmm- I was indeed confusing this with another ABer whose son had taken out loans in her name, but I hope the idea of asking them to check the bank account will help.
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S'ok Factor. That will be the first port of call I reckon.

What will DWP do if it's proved that he didn't take out these loans?
Sorry ummmm- I have to go to work now
They will pursue a recovery / fraud action.... if identity theft is an issue the police may take action also...
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Well I hope they do. This lad has been working and has paid off all his debts so until this came in he was debt free.
If your nephew is absolutely certain he has not applied for a crisis loan and the request for repayments is an error by the DWP I would suggest he does not commence to repay a loan he has not received. If he were on certain benefits the DWP would be making deductions to repay the loan and it is not unknown for the DWP to make errors though there appears little excuse in this case.
The application can now be largely conducted over the telephone and payment of the loan is often made directly into a bank account or if not possible by cheque payable at a post office where proof of identity may be required. I suggest your nephew writes to the DWP explaining the situation and giving his reason for non-payment with as much information as possible including his NI number and of course keeping a copy of the letter for his records.
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How can he possibly prove that it wasn't him when it can be arranged over the phone, a cheque requested, and the post office 'may' ask for ID? Especially considering they have the same name?
Sorry Ummm, had to dive out.

To claim a crisis loan, it must be done over the phone.
You will need your NI number, they ask when you last received benefit and what have you done with it.
They will only pay out a certain amount until your next 'pay day'.
For example, you can ask for £100 but will only offer £60 say, but that is only at the end of the formalities.
They also know how much your last payment was down to the last penny.
If they say yes, and a giro is issued, you must go to the job centre where you sign on with acceptable ID.
Usually, but not always, they will tell you what PO to go to ash it. If you're not a regular, they should ask for ID.
If it was paid into a bank or post office, the DWP will have that on record.
Albaqwerty is quite correct.
Your nephew does not have to prove he did not receive the loan, the DWP have to prove he did which they will be unable to achieve

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