Lcs Credit Management ?

[EDDIE51]

I am involved in a dispute over alleged overpayment of tax credit.
I know it is a mistake and I do not actually owe it.
But today I get a letter from LCS Credit Management demanding repayment, it seems the tax credit people have sold the (non existent) debt to LCS.
I eventually managed to talk to some one at LCS who was very abrupt and kept insisting that even though I was disputing the payment, I had to set up a payment arrangement with them. She kept saying that ''it takes months to dispute an over payment, so you have to set up a payment plan and make payments until it is sorted''
I refused to do it. She then said that if I refused to set up a payment plan they would take me to court. Again I refused and told her ''Please take the case to court , as you will look stupid when I win the case''
I knew I was correct but the woman was very abrupt and demanding, most people would just give in and arrange a payment plan. Has anyone else had dealings with this bunch of con men?
There is something on the 'net' about them debt collecting for British Gas but now Tax Credits are using them as well!

[Islay]

You are incorrect I am afraid, the overpayment is not suspended whilst you are disputing it. Best to set up a time to pay to save any further action.

[EDDIE51]

Sorry you are missing the point. LCS told me I 'HAD' to set up a payment plan while the overpayment was being disputed. I do not owe any overpayment it has already been sorted out by the CAB it was a mistake between pension credit and working tax credit.
I know that the overpayment is incorrect and it will be cancelled. LCS are trying to get me to pay them for something I do not owe.If I had been stupid enough to pay them I would never get the money back once it was proved I did not owe it in the first place.
This bunch of con men are saying that you 'must ' pay them while the problem is sorted out.They were insinuating that it was the law that you had to pay them until the overpayment was cancelled.

[Islay]

If LCs have your details then they must have got them from HMRC - are you sure HMRC have remitted the debt?

[EDDIE51]

The debt has not been cancelled yet but they have accepted that it was a mistake. I still have to go through the process of filling in the forms and getting the final cancellation. This was supposed to have all been settled a year ago when the CAB got involved!

[THECORBYLOON]

LCS are working on info provided by HMRC and if you have not completed forms to finalise the process with HMRC, you would be better spending time on that.

[Patsy33]

Go back to CAB Eddie, just for peace of mind. I sympathise with you, you could do without all of this added pressure from the ' bully boys' Hope you can get it sorted soon.

[mrblear]

This is from the LCS website

If you do not owe the debt then we will just need to verify a couple of details with you. Once verified, we will be able to amend our records and report back to our client. We will of course suspend action and not contact you again as soon as you confirm the details required to eliminate you from any responsibility. We offer a variety of contact methods and encourage you to get in touch so we can resolve things quickly, fairly and amicably.

They also state that they do not buy debt. Hope you get it sorted soon

[Islay]

Nothing is settled until you get that letter from HMRC, if you have been through HMRC dispute system and they had accepted liability then it would be cancelled before now.

I suggest that you have been told by someone in the call centre who do not have the power to cancel overpayments.

CAB do not have any special numbers to get you beyond the contact centre.

[EDDIE51]

I'm going back to the CAB they were brilliant the last time.
What annoyed me was that despite my telling them that there was an ongoing dispute they insisted that I had to start a repayment plan with them. If I had done that I am certain I would never have got the money back once it was settled.

[Islay]

You do get the money back if and when it is settled. They are carrying out Hmrc instructions. Had you sorted this out with Hmrc in a timely manner it would never have been sent to a debt collection agency.

[themas]

Eddie – I’ve only just seen this. The position is:

1. HMRC do not sell debts. LCS are acting for them.

2. HMRC (& therefore LCS) can insist on payments being made during a dispute. This applies up to the time HMRC actually write off the alleged debt. This provision is covered by the regulations & I suspect that – if you don’t set up a payment arrangement – you may be taken to Court. HMRC would then argue that the dispute has not been settled and point to the regulations. If the judge sided with them you could end up with a CCJ and Court costs to pay.

3. If you pay money to LCS they have to pass it on to HMRC. If the debt is written off HMRC refund to you any payments which have been made.

4. I know dealing with HMRC on any Tax Credit issue is a nightmare but am rather surprised it is still going on if CAB got it sorted 12 months ago. Certainly involve them again.