The Department of Task and Pension (DWP) is carrying out “aggressive and rapid” loan collection practices that are more serious than most banks, a charity Martin founded by Lewis has claimed.
Money and Mental Health (MMH) Policy Institute says that the way DWP treats people Maximum profit Is “rigid”, and risk weakened claimants at risk.
The excess of profit occurs when someone is paid more by DWP, as they are often entitled to change their circumstances or due to an error by the department.
Whereas these overpers can accumulate during several months without knowledge of the claimants, WPP You can start taking rapid payments within weeks of spotting this issue.
Agents can then cut 15 percent of someone’s monthly directly Universal credit Payments to resume these overbetes.
This can be a significant loss of income, argument of MMH, with 15 percent of a cut of about 60 pounds per month for a single adult of 25 years of age.
Meanwhile, commercial lenders will need to go through courts to resume loans, a process in which it can take months.
From the expansion of DWP’s debt recovery powers, MMH researchers argue that its powers must be improved to be more manageable for low -income people.
Currently, the Public Authority (fraud, error and recovery) passing through Parliament will give DWP more ways to recover loans, including forcing banks Share the transaction of share account holders, And now being able to make direct cuts from people too benefits,
Donation It also argues that many people are unaware that they are able to call DWP to try to interact on an affordable repayment plan.
This process can be brought to suit consumer laws that they combine, requiring rules with banks and energy companies that are required to join with those who are required.
Charity, who researched the issue, said that a person commented: “It has made it difficult for me to fulfill the ends due to the money deducted from my benefits and I am not eating a few days because I cannot tolerate, which is leaving my mental health.”
Charity also said how to protect people under damage to damage to people under the guidance of debt management standards, including people with mental health problems, should be strengthened to all government departments.
MMH Chief Executive Officer, Helen Andrey said: “When people are paid more in universal credit, they are entitled, it is often through their own mistake, and sometimes first they know when the government takes sudden and cruel steps to bring back those payments.
“People we work with are already getting out of money for food before the end of the month, taking £ 60 suddenly they have left, putting them in further financial difficulty and unnecessary crisis.”
Ms. Anadi says that charity “would prefer to look at better standards applicable in all government debt collections,” saying: “It may not be right that the state is far behind the standards that consumer creditors are behind the treatment of people and on payments.”
A DWP spokesperson said: “While we will urge people to report changes in circumstances to avoid falling in debt, we understand that there are loans and always support the strugglers with repayment to pay cheap plans.
“We have introduced a new fair repayment rate, which caps the loan repayment made in universal credit at 15%, allowing 1.2 million homes to keep their universal credit more.
“Our new fraud bill will help us identify the overbetes as soon as possible so that we can help prevent people from falling into debt, and to do so that it is appropriate and proportional.”