Claimant who lends money

Currently, there are 0 users and 1 guest visiting this topic.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • #31940
    Ozzie Bird
    Participant

    Hi
    Just want to confirm that we are reading Reg 41 correctly. We have a claimant, under 60yrs, who has made a new claim but a couple of months ago leant £10,000 to a friend. If we totalled her remaining capital and included this £10,000 loan, her total capital comes to £17,000. I understand from the regs that if it totals over £16,000 we are to disregard the £10,000 from the total capital and take the agreed repayments into account as a weekly income. Firstly, if I’ve got that right my next question is from what date should I take these weekly payments into account as the claimant tells us she is not expecting to get any repayments until next year. So would we disregard the £10,000 loaned out and any weekly repayments until next year or do we take the expected repayment amounts into account from the start of the claim?
    Any help appreciated

    #89335
    Chris Robbins
    Participant

    Hi Jenni,
    If you believe that this money is capital payable by installments then I think you have got it right.
    However as it is capital that was actually in the claimant’s possession before they loaned it out I would be more inclined to consider deprivation. Did they make the loan just prior to the claim for HB? If so, what did they intend to use to pay rent/CTB after making that loan?

    #89336
    Ozzie Bird
    Participant

    Yes, we are definately asking more questions along the lines you’ve suggested and considering the question of deprivation, which I know is hard to prove but is definately a possibility here. Thanks for your reply.

Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.