Tax credit debt collectors letter

[olaflikeswarmhugs]

I got a letter not long after my renewal letter saying I owed £300 from tax year 2011/12 . I thought I'd just wait until after the 31st July to Phone them because of how busy the lines are . But I've just got a letter from a company called Sigma saying they debt has been passed on to them . Can I still phone tax credits to pay the debt ? Is it even legit ? Also will it affect my credit rating that's already in the shit anyway

It should only affect your credit rating if you don't pay it, and get a Default.

Ring the tax credits helpline now - they get quieter later in the day.

Online, there us a list of debt-collection agencies that HMRC use. Let me see if I can find it, hold on...

Here it is (Sigma Red is on it): www.hmrc.gov.uk/payinghmrc/debtcollectors/

If HMRC have passed this to an outside agency, you might nit be able to pay it directly to HMRC anymore. (I had this issue with an old National Insurance debt. ) Why not call Tax Credits helpline to check it's legit, then pay the collection agency direct and make sure you get a receipt.

I've just checked that list, What's

Pretty depressing reading tbh. I used to very active on various legal advice sites, and almost all the companies listed were mentioned for dubious and aggressive 'debt' collection methods.

OP, have you failed to send in renewal form at one point, because overpayments are usually taken from the following years allowance

Yes that's a good idea . I can't phone then just now I have the DCs here on my own but might get a chance later . Last year I renewed my TC at about 11pm on the 31st July . I just could never get through and waiting in telephone queues gives me the rage

And I was so happy this year that I could renew by internet and now I still have to phone them

Aw well thanks anyway

Be wary about calling the company, those sorts are virtually unregulated and mishear phone arrangements, do what you can in writing through the post. Registered if possible.

But yes to calling HMRC first, double check what's going on.

Jenny it said on the letter it was because my circumstances changed during the year and my claim had to be cancelled and redone or something like that I can't remember although if I did renew late one time it would not surprise me I'm murder

It's bloody ridiculous that they let things like this happen, people who claim tax credits don't have spare cash to cough up charges to DRAs

Surely it would make more sense to recover overpayments back through future claims

Or would it be too cynical of me to think that the government don't give a rat's cock about lower income families? They will have sold your debt on for a fraction of it's worth, so how can it be about recovery?

I know Jenny IMO no matter the circumstances of the overpayment , they should be able to take them out of current/future payments .