I have a case which went through the Tax Credit internal complaint procedure and is now with the Adjudicator's Office because we were (to put it mildly) extremely dissatisfied with the response from the Tax Credit Director's Office. As well as the overpayment, the client had suffered a visit from their fraud team; also was unable to get legal aid because the incorrect amount they were paying was such as to make her ineligible. Substantial legal costs were then incurred.
I don't know what the outcome will be. The Tax Credit people were asked for their report on the case by the Adjudicator's Office 7 months ago, and have still not provided it! Still, it is another route you could try if you haven't already.
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