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Landlord recovering rent arrears through UC deductions
I am sure someone here will be familiar with the process, and may be even able to direct me to relevant guidance.
I have a client whose LL is recovering rent arrears but client vehemently disagrees with the amount owed.
LL did not reply to our request to provide rent statement or any evidence.
How do Landlords persuade UC about the arrears, how do they convince them about the amount that is allegedly owed by the client?
What is the dispute process regarding this issue?
Are we challenging UC decision? But they have only done what the LL told them to do…
not quite on your specific point, but the RN thread below may provide some illumination?
Not sure a LL has to “persuade” UC, but simply has to notify them of certain “facts” and meet - eg- the two month criteria…..
https://www.rightsnet.org.uk/forums/viewthread/19592/#92341
It seems to me that a dispute over the amount of arrears is primarily and remains a dispute between LL and tenant (and all that comes with that).
However, if - say - the admitted arrears amount reaches a point where it is paid off (thru the UC deductions) and the LL does not accept that the arrears are yet paid off (because the LL says the arears are greater than the tenant admits) , then it will I think be difficult to stop UC deducting (as per the discussion above) and may require the kind of action contemplated again in that thread above (ie JR of the DWP if they refuse etc).
All of which does not bode well for the present/future relationship or approach between LL and Tenant in such a case of course.
Happy to be corrected on any of this as it is not really my usual or specific area of work ........
[ Edited: 14 Mar 2024 at 08:41 am by Peter Donohue ]Great find, Peter, thanks.
I can’t believe there is no mechanism to show proper proof of rent arrears. Just asking for abuse of the system by unscrupulous LLs.
Indeed!! (although others may have more of an insight into the mechanics of this process to allay your fears, but I am not able to discover any such)
The first thing that springs to my mind, in addition to what’s been said above, is that the landlord will have been overpaid by the tenant and will be in breach of the Tenant Fees Act.
For social landlords, applications for third party deduction for rent arrears are made through the UC Landlord Portal. Social Landlords are trusted partners of the DWP and the application just requires a declaration of the arrears figure. It doesn’t look like your question relates to a social landlord (if a social landlord refused the provide a rent statement then you could go through the complaints/ombudsman process).
All landlords can also use the online application form at https://www.gov.uk/government/publications/universal-credit-landlord-request-for-a-managed-payment-or-rent-arrears-deduction
Anybody can follow the link and see how applications are made.
As discussed in the other thread Peter has linked to, I would agree that UC should review a third party deduction and seek evidence if the level of arrears is disputed. If the landlord refuses to provide evidence to UC then I would expect UC to stop taking deductions (assuming the tenant’s figures would take them out of scope of third party deductions).
I would guess a complaint, and possibly JR would be the way forward. I can’t see that an MR would be appropriate unless the claimant doesn’t meet the conditions in Para 7 of Sch 6 of the UC, PIP etc. (Claims and Payments) Regs - e.g. not in arrears, or arrears from a different address.
The operative word in Reg 60 of the UC (Claims and Payments) Regs is may, not shall
A decision under Reg 60 is not prescribed in paragraph 1 of Schedule 3 of the decisions and appeals regs, so the decision is appealable
As I said in another thread , this was aknowledged by the Court of Appeal in Timson.
A Tribunal will stand in the shoes of the decision maker when exercising the discretion under Reg 60 and ought to take all the appellant’s circumstances into account
[ Edited: 19 Mar 2024 at 01:44 pm by Stainsby ]