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ernie h
01-21-2011, 09:47 AM
hello..

im new to the forum but really need some help

i am confined to a wheelchair after breaking my neck and am in receipt of IS,HB,DLA
in 2005 i decided to get a bank loan to purchase an adapted vehicle.....i knew that with the bank loan i would go above the means tested savings threshold....so i contacted the dwp and hb and asked there advice...they said that if the money was not being used to make an income( ie investing in shares/buisness) the bank loan should be fine.

the dwp now say that the loan took me above the savings threshold allowed and i have been overpaid
can anyone clarify if a bank loan that has to be paid monthly and within a certain timeframe is classed as savings or capital.

many thanks


I forgot to mention i got the information below from the C.A.B but not sure if it is correct or not

"If, when you get a loan, you are under an immediate obligation to repay it, it should not count as your capital."

"A loan that you have an obligation to repay immediately should not be treated as your income (or capital), however it is paid."

Extracted from "The big book of benefits & mental health"

Debbie
01-21-2011, 11:45 AM
If you got a loan and used it reasonably quickly, how quick is reasonable can vary according to circumstances. If the money was earmarked for a specific purpose, and used for that as soon as possible, it would not usually count as capital, since you have to repay it, and don't have it, once its spent. Experience tells me that in your situation DWP or any tribunal should see the purpose of the loan acceptable, should this be an issue. Seek advice, and appeal, don't just pay it back, until an appeal decision is made. You have a month from the date of the repayment decision, the office dealing with your claim, will give you a GL24 appeal form. If you are out of time an adviser can help you request a late appeal, if appropriate. Not understanding your rights and needing advice may be enough. If you do not understand the system, its best to get help whenever you contact DWP. If HB request repayment, they have an appeal process too.

Debbie, adviser with experience of meanstested benefits

ernie h
01-21-2011, 12:03 PM
Thank you for the reply Debbie

I think the problem is that due to a long period with an on going illness ,not all of the money was used as quickly as we thought.
Some lay stagnent for a few years, though when spent all the money was used for a vehicle,wheelchair and other disability specific items.

What angers me is that i asked for advice before taking out the loan and no problems were put forward and no timescales regarding when the money should be spent by where mentioned....when i received the information from the CAB I thought i was covered......not so it seems

ernie h

Debbie
01-21-2011, 12:33 PM
If you held it for some years, then that may be the difficulty, it would possibly become an asset. Seek advice, if there was a reason for the delay, then the adviser may be able to prove good cause. This depends on circumstances