The client went bankrupt 5 years ago. Last year the DWP started to recover a tax credit overpayment debt from the client’s universal credit that was included in the bankruptcy. The client had tried to contact the DWP themselves. We contacted the DWP to notify them of the bankruptcy and that the deductions were unlawful. After a few months of complaint letters, phone calls and subject access requests the DWP eventually agreed that the deductions should not have been taken. They stopped the deductions, refunded the client £350 and updated their system to record that the remaining tax credit overpayment was written off in insolvency.
Well done to Scott, our Money Adviser