Overpayment by child tax credits

[wigglebum]

Just some advise please

My nextdoor neighbour was issued a letter last year about the overpayment of child tax credits which was in the news. This letter stated that she was over payed by �800 or thereabouts. A month ago she was then phoned and told that she actually owed �7000 of overpayment.

Is there anything she can do as she obviously was more that willing to sort out the �800 but to increase to �7000 is ridiculous and its really getting to her. She has been advised to go to her MP is this the only solution?

Thanks in advance

[Kathyan]

She could try the Citizens Advice Bureau. I think it's disgusting the way these claims have been handled. In my eyes, they made the mistake so they should take the loss. It might make them think twice about making mistakes in the future! Hope she gets it sorted.

[wigglebum]

Thanks Kath, I think the same especially if people are keeping there details up to date and it is there mistake. Will try every avenue as she doesn't have that sort of money and to be honest I don't think she's received it either. Thanks again xx

[divegirl]

I have recently returned to work and I am in reciept of working parent and child tax credits....stories like this scare the carp out of me and I have made sure to keep every little bit of paperwork and bank statement since starting work. Has she not done the same? Just an observation....�7000 as an over-payment seems a massive amount of money! I get about �142 a week so she must have been getting a huge amount of money per week to be over-paid by that amount. Follow kathyans advice and get her to the CAB.

Good luck

Lisa x

[mrs_overall]

Contacting your MP might be a good idea. My niece discovered the tax credit people owed her money (they'd not taken into account one of her kids was severely disabled). They admitted they owed her about �2k but never sent it. Our MP has a woman working for him who deals purely with benefits enquiries, and MP's have a direct line number to all the benefits departments. My niece battled with the tax credit office for 7 months.Her MP's office phoned them and she got the money 4 days later.
These people are quick to demand back overpayments but slow at paying it out. Good luck.

[booboo67]

i have been in a 3 year dispute with the CTC office in preston. they said i owed nearly 4k. i know i never owed that amount as if i hadnt of had that money i wouldnt have had anything. if a form isnt filled in properly or not sent back on time, your claim is calculated on the info they have at the time. if you then change your circumstances half way through the tax year the claim they was paying you on then ceases. and it is all classed as an overpayment. sometimes this is seen by them and one claim cancels out the other but sometimes it doesnt. saying that not all overpayments are a case of that and some are owed. if your friend thinks its wrong tell her to go to her mp. it does help, mine has been very helpful and i am after 3 years getting somewhere. the more information she has the easier it is to explain to mp's. they are not experts in the field but can help.
good luck

[themas]

She is entitled to be given a detailed breakdown of the figures showing how the alleged overpayment is made up. However, the system is so complex that it is often difficult to understand this and Tax Credit Office often gets the figures wrong themselves!

Much best if she sees the CAB or her MP for help - taking all the paperwork with her.

She should have been sent a booklet COP26 about overpayments which gives some info about what is supposed to happen.

There is a complaints procedure she can use & she can ask for a booklet COP1 about it - but it is far better for her to get help in making any complaint.

[fiesata]

As mentioned challenge the amount - they often get it wrong

[amonty1144]

if the mistake is there's and she can show that she has kept them up to date, then they will write off the debt and not have to pay it off. They also have a hardship clause, so if the repayment would bring about real hardship to the children, she won't have to pay it back either.
I've been fighting for 3 years, 1st year debt was written off but i'm now repaying the last two years overpayment, which basically means i no longer get a bean.
good luck