I have a client who had an overpayment of Income Support from 1989/90. The overpayment went through the County Court and the client repaid it in full.

However she has now been contacted by Legal & Trade Collections (on behalf of DWP) saying she still owes the money. Client contacted DWP and told them she had cleared the overpayment following the original CCJ. DWP responded by saying they had no record of this and the client would need to provide proof that they had paid.

The client does not have any proof of payments as it was so long and cant even remember where she paid. Even if she could remember it would not be possible to get the proof as banks/building societies etc dont keep records over 6 years. In addition the County Court doesnt keep records past 6 years so there is no way of getting proof from them that the CCJ was satisified.

I can only assume that an error has occurred with DWP's systems, which must have been changed/upgraded numerous times since 1989/90.

Has anyone else come across this situation or have any advice on how best to deal with this problem.

Thanks.

I'd be tempted to tell Legal & Trade Collections to put up or shut up and take the case to the County Court and let a judge decide.
Can't see the DWP being able to prove there is a debt owed.

Actually I'm not so sure that is the best way to go. The limitation act does not apply to enforcing a CCJ (unless it is a new cause of action e.g. bankruptcy proceedings started on the strength of a debt proved via a CCJ). So if DWP apply to court for enforcment of the order (NB of course they would have to prove the order was made), I think the imediate burden is on client to prove it has been discharged. The Registry Trust (http://www.registry-trust.org.uk/Home/tabid/35/Default.aspx) only hold the registered judgements for 6 years and if she has no other evidence it was paid.....

Seems seriously unfair though. I would request disclosure of what evidence they have of the original order. If they can't produce it I don't think she has to worry. Other than that I would suggest a formal complaint and involving the MP.

As you probably know, once a CCJ has been obtained the creditor can chase the debt indefinitely - the Statute of Limitations does not apply. However, I believe that if they want to take enforcement action and have done nothing for a long period (is it 6 years - I'm not sure?) then they have to get the leave of the Court to do so. In other words they have to explain to the Court why they have left it so long. If it was all done with about 18 years ago, I hope any sensible judge would refuse them the ability to enforce it.

However, I'm not sure the previous post is quite right - I don't think DWP need now to prove the debt exists - they proved that when they got the CCJ. However, they would have to prove that there was a CCJ. They might have trouble doing that, if their records are so poor.

Your client should certainly write to LTC denying liability & saying why (keep a copy - send recorded delivery). They might then decide they aren't interested in fighting it, & return it to DWP. However, the merry go round could then start again with another DCA.

Your client should keep a watch on their Credit Ref. Agency records - there is nothing to stop LTC or DWP logging this as a default. Incidentally, very much a long shot, but have you checked with the CRAs how long they keep records? Unlikely, but if they did have old records it might show the debt as being satisfied.

Whether the client paid or not, this is an appalling case of mis-administration by DWP. Could your client involve his MP - who might then take it up at political level & get this written off in the interests of natural justice?

Letters have been sent to LTC and client's MP, and awaiting reply. I have a feeling LTC will just say the client has to pay, at which point we will make an official complaint to DWP.

I agree it is an absolutely shocking case of mis-administration and hopefully we should be able to get it resolved promptly.