db0070 Posted October 28, 2012 Report Share Posted October 28, 2012 I had a Housing Benefit tenant who moved out in 2007, and I informed the council. However, the council kept paying direct to my bank account the tenant's housing benefit and the over payment reached around £3700. Meanwhile, the new tenant's housing benefit was paid direct to the tenant, who after a few months did not pay me. It took the council 2 months to direct the tenant's housing benefits directly to me. By the time I evicted the the tenant, I was owed around £5000 - which the council says is nothing to do with them but recoverable from the tenant - even though the council was paying the tenant directly. I have now received a Benefit Recovery Notice stating that under the Housing Benefit (General) Regulations 1987, the time allowed for seeking a review of, or appealing against the decision has expired, and threatening that the over payment decision will be enforced in the County Court, which will result the sum increasing in respect of interest at the rate of 8% and costs. The way I see it, first of all I had informed the council when the first tenant moved out. But it was the council's fault to keep on paying me. I also feel that the council's lack of efficiency contributed somewhat to the second tenant's arrears amounting to around £5000. Now, after 5 years the council is looking to take this to the county court, and have given me up to 3rd November to make payment. Any experts there who can help? Link to comment Share on other sites More sharing options...
Grampa Posted October 29, 2012 Report Share Posted October 29, 2012 I had a Housing Benefit tenant who moved out in 2007, and I informed the council. However, the council kept paying direct to my bank account the tenant's housing benefit and the over payment reached around £3700. Meanwhile, the new tenant's housing benefit was paid direct to the tenant, who after a few months did not pay me. It took the council 2 months to direct the tenant's housing benefits directly to me. By the time I evicted the the tenant, I was owed around £5000 - which the council says is nothing to do with them but recoverable from the tenant - even though the council was paying the tenant directly. I have now received a Benefit Recovery Notice stating that under the Housing Benefit (General) Regulations 1987, the time allowed for seeking a review of, or appealing against the decision has expired, and threatening that the over payment decision will be enforced in the County Court, which will result the sum increasing in respect of interest at the rate of 8% and costs. The way I see it, first of all I had informed the council when the first tenant moved out. But it was the council's fault to keep on paying me. I also feel that the council's lack of efficiency contributed somewhat to the second tenant's arrears amounting to around £5000. Now, after 5 years the council is looking to take this to the county court, and have given me up to 3rd November to make payment. Any experts there who can help? There is two issues here, first the over payment relating to the first tenant and two the rent arrears from the second. You knew the payments (3700) the council kept paying for tenant 1 shouldn't have been paid but you decided to keep the funds. Unless it is a council mistake and you appeal in correct timescale you have to repay back. I think you make a serious error of judgment by keeping the funds and some would say it was greed. Why did you think they wouldn't ask for the funds back when they found out? It is easy to blame the councils lack of efficiency for the arrears of tenant 2, but you have to take responsibility for your own actions as a landlord. Taking HB tenant (or being a landlord) does come with certain risks. It seems you have chosen to be a landlord without using a good agent, lack of basic housing law knowledge, or council benefit rules and regs. You need to move foreword with this and pay back the money requested from the council and write off the arrears from tenant two as your own fault for allowing the arrears to built up so high without dealing with the problem in a more timely manner which a more experienced landlord would do.. Link to comment Share on other sites More sharing options...
Carryon Regardless Posted October 31, 2012 Report Share Posted October 31, 2012 8%, where does that come from in today's climate ? You did put the excess funds to one side I assume. Link to comment Share on other sites More sharing options...
Longmere Posted October 31, 2012 Report Share Posted October 31, 2012 The 8% is chargeable pursuant to Section 69 County Courts Act 1984 They can also charge compensation {business to business} at £70, as your debt {as they see it} is between £1000,00 and £999.99p Link to comment Share on other sites More sharing options...
db0070 Posted November 1, 2012 Author Report Share Posted November 1, 2012 I still say it is the incompetance of the council to keep paying me. They had actually overpaid me by over £13,700. When eventually they reacted, they calculated, and asked me for approx £11,000, which I did pay back. This was in 2008. I thought that was that after I paid them. Later they sent me another demand for £3700 overpayment. I have checked, and on paper it looks they are right, but with these huge sums of money being overpaid, (the bulk of which I paid back) and the fact that I lost around £5000 from the sencond tenant, I do feel that I have been left in a difficult situation - some my own fault, and some the council's. Link to comment Share on other sites More sharing options...
Melboy Posted November 1, 2012 Report Share Posted November 1, 2012 But it was the council's fault to keep on paying me. You might think that but it is also your responsibilty to check that money you are receiving you are actually entitled to and from what you have written.....you were not. I also feel that the council's lack of efficiency contributed somewhat to the second tenant's arrears amounting to around £5000. Now, after 5 years the council is looking to take this to the county court, and have given me up to 3rd November to make payment. Back payments on money owed can be legally claimed for up to 7 years or for HMRC there is no time limit. Let us all know how you get on in Court. Link to comment Share on other sites More sharing options...
db0070 Posted December 10, 2012 Author Report Share Posted December 10, 2012 Well, I have got this settled, and Bill Irvine (from another forum), an expert in this helped me. The council looked at the case again and has decided not to chase up the over payment. Thanks Bill! Link to comment Share on other sites More sharing options...
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