LCS Debt Recovery Help

[NC17]

Hi everyone.

Sorry I'm posting for traffic as I'm stressed and need fast responses.

I have received a letter from LCS Debt Recovery for my tax credits overpayment of £3700! I had a letter a while ago from HMRC but stupidly ignored it, I was in the middle of doing my dissertation and completely forgot about it. I don't know how I've been overpaid but I expect all correct.

Has anyone experienced this before. Can I phone HMRC and arrange a payment plan or is it too late? I've read horror stories online about the harassment and bullying tactics LCS use and don't want to deal with them.

I know this is all my fault. Has anyone been through this before and know what to? What happens? Etc.

Thanks

Phone the company. Make a repayment plan.

If the debt has been sold on then you've ignored it for a while. If you are receiving letters then it's in compliance stage, the next stage is enforcement agents visiting the property. Don't stick your head in the sand, deal with it and the debt won't escalate further.

Just call them, if they try to bully you into paying money you simply cannot afford then I would speak to either citizens advice or step change and ask them to liaise with them

Don’t ignore it though.

Don’t pay the debt company, call HMRC and make a payment plan with THEM.

Debt companies will add costs on that you needn’t pay as well as trying to get a payment plan that will be hard to stick to.

Phone who you have the debt with.

Just to add, you are much more likely to be able to create an affordable long term repayment plan by dealing with the company direct.

If you have an enforcement agent visit the property then it is down to the individual agents discretion as to what they are willing to accept as a repayment plan usually. (And their fees go on on top which will be added to your debt.)

Don’t pay the debt company, call HMRC and make a payment plan with THEM.

This is bad advice. By all means phone HMRC but phone the debt company aswell. Do not ignore them.

If you are able to set up a payment plan with HMRC in the first instance then still phone the debt company to let them know also.

Thanks I spoke with HMRC who would do nothing as it's out of their hands now. So I called LCS and set up a repayment plan. It was all done in 5 minutes. The lady was lovely and just asked how much I can pay. Nothing to be afraid of.

Brilliant! Well done OP!

I had a debt collection letter from this company regarding my tax credits. I hadn’t received a letter from HMRC. I rang them and spoke to a lovely young man on the phone who went through my income and outgoings and said he didn’t think I could afford to pay back at the moment and has deferred payment. I had offered to pay £10 per month but he said no.
TBH I think I’ve actually paid back more than I’ve ever received. Wish I’d never bothered in the first place.
Just give a call OP and arrange a payment. Don’t worry x

Cross post but that’s great x

LCS is regulated by the Financial Conduct Authority and has to work within the FCA's guidelines on Treating Customers Fairly, namely:

1. They must assess you for vulnerabilities in a timely manner
2. They must ensure repayment plans are truly affordable
3. They must tell you where you can get free debt advice and give you a reasonable opportunity to seek that advice

HMRC does not have to comply with these 3 things, so you stand a better chance with LCS than HMRC.

Most 'horror stories' are a hangover from before the debt collection industry came under FCA regulation.

LCS will also put the case on hold of you want time to check out whether the overpayment is really due with HMRC.

I don't work for LCS or HMRC, but I do know this industry really well and I only joined Mumsnet to give you this advice as the story popped up as a targeted news story in my browser!

You're welcome to pm me if you want any more detailed advice.

Best of luck.

I am resurrecting this thread (it's not that old, but still!) as I too am being chased by LCS for a tax credits debt. The issue is, I completely dispute the amount they are saying has been overpaid! I haven't received tax credits at ALL in 2017 or 2018. They started in April this year, I had 9 weeks of payments (totalling exactly £1100) and then I did the renewal and payments stopped within 3 days. LCS are telling me I owe almost £3,000. Impossible!

HMRC are ignoring my letters disputing the amount and I have no idea where to go from here. I am already on a debt management plan with StepChange and thought everything was slowly getting sorted, and now this.