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Can tax credits TAKE money directly out of my bank?

6 replies

MrsSnape · 10/11/2007 11:23

Basically tax credits have messed up (suprise) and paid me an over payment for the past 3 years despite the fact that they've been paying me for most of it.

Last week they told me that £10k would be put into my account on Monday. I said this was wrong so she said she'd try and stop it but it still may go in.

Anyway, I phoned a few days later and she said some of it has been recalled...so I said fine.

Anyway, today I checked my bank and almost had a heart attack...£10k has been put in and it's not even waiting for clearance, it actually says "available to spend".

Now, obviously I'm not going to go and spend it but about £1k of this is actually owed to me however I'm worried that I go and spend £1k and then they take the full lot out of my bank and leave me overdrawn.

So, can they actually take the money out themselves now that it's there? or would they have to actually ask for it back?

What is likely to happen now? I'm assuming they will just work out how much I am actually owed and take the rest back but this is surely too simple for them.

Has anyone been in this situation?

OP posts:
PositivelyMellow · 10/11/2007 11:26

They took our back by basically stopping my dh's payments and cutting mine in half.

I wouldn't spend it if it was not mine, they will just take it back.

MrsSnape · 10/11/2007 11:29

I won't spend it but as I say some of it is mine, I'm just not sure exactly how much.

What I mean is, can they actually withdraw the money back themselves from the actual account?

OP posts:
rantinghousewife · 10/11/2007 11:31

I don't think so, with ours they reduced (or rather zeroed) the next years payments.

QuintessentialShadow · 10/11/2007 11:33

You should call them and find out what way it will be returned to them. If they can recall, or if you need to do something.

With us they were just reducing the amounts to even it out over the year.

10k is a lot of money to "pay" back over time.

PositivelyMellow · 10/11/2007 12:18

In answer to your question, no they cannot take it back out of the account.

purpleturtle · 10/11/2007 12:22

You might be able to repay what you owe by sending a cheque or something. It's a huge amount of money to repay by them withholding payments over the next year(s).

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