DWP alleged overpayment

[daleherbert]

The Department for Work and Pensions (DWP) sent me a letter alleging that during February 1993 they overpaid me �79.02 in benefits. The letter stated that I should send the payment immediately as they had described in 5 previous letters why the money was due.

In the last 14 years I have moved home several times, including a spell of 4 years living abroad, so it is entirely possible that letters were sent to me at addresses that I was no longer living at.

My question is this; should I pay them in the belief that they could not possibly be wrong? I was on benefits around that time - but who can remember that far back?

[Kaz081992]

Contact them immediately, tell them you have not received the other letters and why and then ask them to send you a breakdown of where the overpayments have occurred. Once you have that you can see if the debt is genuine and negotiate with them from there.

[bednobs]

i think you should pay it if you cant prove it.

[themas]

If you have not made any payment for the last 6 years or ackowledged that you owe the money during the last 6 years (and your post seems to indicate that this is the case) then the debt is statute barred. This means they cannot take Court action to enforce payment of it, although the debt (if it is money you do owe) still exists.

You could try telling them you have had no previous information about this alleged debt and that it is statute barred, and see what happens.

[scotchollie]

I'm not sure that Themas is right.

A debt is considered Statute Barred if a creditor has not contacted a debtor for a period of 6 years and no action has been taken on the account.

Although the debt is still legally acknowledged as being owed, the creditor is not able to take any legal action against the debtor in order to recover the debt.

It is considered unfair if a creditor or debt collector misleads the debtor into believing the debt is still legally recoverable. It is also considered an unfair practice if the creditor or debt collector press for payment after the debtor has stated they will not be paying the money owed.

This could amount to harassment contrary to Section 40(1) of the Administration of Justice Act 1970.

I suggest you write to the DWP, quoting the Freedom of Information Act, to get all the notes and info on your account - which will show if they have have tried to contact you in the preceding 6 years.

Make sure that everyting you do is backed up with copies and send everything in the post by recorded delivery.

Once you've posted it, if you can also fax it and keep the header sheet, it will reinforce your case considerably.

[scotchollie]

By the way - once the DWP receive your enquiry under the Freedom of Information Act, they MUST reply to you within 21 days.

[themas]

Ollie's first para. is a common misconception. Statute barring occurs if the debtor has not paid, or acknowledged to the creditor that he owes the money. The creditor can contact the debtor as much as he likes, but if the debtor ignores all contact and does not do anything to acknowledge the debt then statute barring becomes effective after 6 years.