I'd appreciate opinions on this please...

Debt centre tried to recover an overpayment debt from client. We wrote twice saying we had disputed the decision and would they hold. Second letter ignored.

Recently client gets a letter. The top left hand corner has the DWP debt management logo and it's signed by Gill Concannon, Debt Centre Manager. The giro slip contains the words 'department for work and pensions'.

The first paragraph reads as follows: "I am writing about a debt our records show is outstanding. DWP debt management, part of the Department for Work and Pensions, is responsible for collecting this money. however, your case is currently being considered for immediate transfer to a private company for debt collection". The second paragraph says "... please get in touch with our payment agent...".

Hopefully, you'll all agree that this letter appears to originate from the DWP and appears to be something akin to a 'final warning'; i.e. pay up or we refer to debt collectors.

So why is it then, the payment should be made to Eversheds, whose address is given at the top right corner marked 'address to send payments to'? The payment agent is Eversheds?

Surely this must mean that the file has already been referred to 'debt collectors', which means that the letter is deliberately misleading.

Note in the first paragraph that two organisations are listed: 'DWP debt management' and 'a private company for debt collection'. I phoned the payment agent and spoke to a notably unhelpful bloke who, after some pressure (he really didn't want to speak!), admitted that he worked for Eversheds "who are independent of the DWP" and who "work on behalf of the DWP", but "we are not a debt collection company"....

Surely this is all deliberate misrepresentation...? They can't say that a case IS BEING considered when in fact it has already been transferred... hasn't it?

I'm confused. I know it might seem a bit petty, but at the same time it stinks and I intend to complain. Has anyone come across this before and challenged it? What was the response? Is there anyone with debt recovery experience who can suggest why a complaint is important (or indeed necessary)?

Thanks all..

if private debt collectors are allowed to use government department records,letterheads, public servants and their signatures and authority, and be, shall we say, economical with the truth in their written communications with members of the public - for profit, a collapse in public confidence is a predictable consequence...imho...

Benefit overpayments/debts are not regulated by the consumer credit legislation, but Eversheds will doubtless have a licence from the OFT for collecting consumer credit debts.

Para 2.1 of the OFT Guidance on debt collection states that it is an unfair busines practice to "communicate in whatever form with consumers in an unclear, inaccurate or misleading manner". Breaches of the guidance can result in severe sanctions for the debt collector (including withdrawal of their licence to collect debts).

Is it worth making a formal referral to OFT about this? Even though they don't have jurisdiction over benefit overpayment collection, they may be concerned to learn that a licensed agency may have breached the guidance.