Government cannot reclaim on overpaid benefits - new Appeal Court ruling
The Appeal Court ruled on the 14th October 2009, that Secretary of State for Work and Pensions cannot recover overpayments of social security benefits through the courts where the claimant is not at fault.
The case was brought by Child Poverty Action Group, CPAG, after government wrote to over 65,000 claimants telling them it could take them to court at common law if they did not pay back overpayments.
The benefits include many of those that cost the taxpayer the most, including income support, incapacity benefit, housing benefit, pension credit and the state pension.
The court’s decision means the government cannot write these letters to claimants in future.
The basically means the incompetence of the bureaucrats at the Department of Work and Pensions the tax payer will pick up the bill for which auditors are claiming to be as much as £900million in overpayments last year alone.
This ruling has affected the poorest people in our society and they do not have the means to repay the sums back. Had the DWP won the case all they would have done would stop the current benefits to those that had been overpaid until they had recovered the amounts, this would have caused considerable hardship and misery.
Important point to note, this ruling does NOT affect 'over payment of tax credits'. There is a separate campaign on this which you can find out more at the CPAG Amnesty for tax credits overpayments.
Post Strike - How to avoid those late payments charges
With the postal strike gathering momentum and forecasting all out on 22nd October 2009, consumers need to act now many consumers are getting their credit and store card statements delayed. There is also a delay in sending payments such as cheques, which can lead to a late payment charge. Check below to see if you could be affected by any of the following;
% Credit Card Transfer Promotion – You must make that first payment on the balance transfer deal and I would suggest you set up a direct debit with the credit card company to pay at least the minimum amount in time to make your first payment.
If the lender delays it, and it’s in their interest to do so and it does not get paid then you will be charged the £12 fee for late payment as well as the balance transfer fee, for example - 3% on £6,000 - £180! You could also find that the special introductory offer has been withdrawn and your credit file marked down!
Your credit file - Any missed or late payment will probably end up on your credit file. This will then impact on any future credit applications such as mobile phone, credit or store card and even a re-mortgage. The majority of lenders generate late payment penalties on credit cards by computer so there is no human touch; therefore thousands are expected to be hit with additional charges and have their credit files marked down because of delayed post.
Utility payments - This is not just affecting borrowing; consumers making late payments could also find that they are technically behind with their utility bills, which will once more be detailed on their credit reports and could have an adverse affect when applying for further borrowing.
Moneywise DebtWizard’s tips on what to do
Cheques - Stop sending cheques in the post unless it is not urgent and you do not have payment date to meet.
Credit card & store cards - If you have credit or store card payments to make then call the lender and ask how much you have to pay and by what date. If you can pay over the telephone use a debit card, or do this at a relevant bank or post office or on-line via the internet. If you have a nought per cent promotion then please read out comments above.
Set up a direct debit - If you pay by direct debit then it is up to the payee’s bank to call for the payment, but you will need to keep an eye on your own bank/building society account to ensure the smooth running of any direct debits.
Mistakes and errors are covered by the direct debit guarantee. This will ensure the payment is made and could work out cheaper in the long run as some lenders, in particular utility suppliers, offer discounts for direct debit payment.
Pay on-line over the internet - Again there are many financial institutions and utility companies that offer discounts for this way of paying; they also email statements to you thus avoiding additional cost and post delays.
Cash machines, ATMs - These can be useful as you can get copies of mini statements to ensure smooth running of your account.
Post office - Some payments can be made by cheque, postal order, debit card or cash over the counter; you will then get your payment slip date stamped to prove date of payment.
Important - Big important thing to do if you have sent a cheque in the post and decide to pay another way then CANCEL your cheque that is languishing in the post holdup; otherwise you will eventually pay twice.
Already made a late payment - If you feel your payment was delayed by the post then at least call the firm you were paying to see if they will waive the late penalty charge, some may be supportive.
Recently got done for speeding? - Around 58,000 motorists a week get caught and receive a Notice of Intended prosecution (NIP) with 14 days of the offence. If you receive this NIP after this date then keep the envelope and ideally get a witness, if possible the postman or neighbour, to confirm when the letter was delivered. You still have to acknowledge it otherwise the registered owner will receive a summons and cannot rely on the 14 day notice as a defence.
The best way to avoiding receiving a speeding ticket, is don't speed!
