Can Pastdue Credit Solutions Contact You For Tax Credits Debt?

If you have been contacted by Pastdue Credit Solutions for Tax Credits debt and are wondering  if you are supposed to pay them, you will find guidance through the following blogpost. In addition to the role of a debt collection agency concerning overpaid Tax Credits, we will also discuss the responsibilities of a debtor in such cases.

Can Pastdue Credit Solutions Contact You For Tax Credits Debt?

Yes, Pastdue Credit Solutions can contact you if you have been overpaid Tax Credits by the HMRC. If you claim Child Tax Credit or Working Tax Credit and have been paid more than the amount you are eligible for, the HMRC can recover this amount by either reducing future payments or hiring a debt collection agency such as Pastdue Credit Solutions to recover the debt on their behalf.

In most cases, Pastdue Credit Solutions send a letter to debtors claiming repayment of their Tax Credit debt. If this is the first time that you are learning about the existence of a Tax Credit debt, you may not be sure of how to respond to such communication. 

First and foremost, you should prepare yourself that if you have been contacted by a debt collection agency; Pastdue Credit Solution, in this case, you will have to pay your dues to them. You can either choose to repay them in a lump sum amount, but if you are unable to afford a one-time payment, you can request an instalment-based repayment plan.

Secondly, you must remember that the HMRC would have paid Pastdue Credit Solution a fee to recover the amount for them and some of their payment may be dependent on the amount that they can recover from a debtor. Therefore, they will authorise all powers available to them to chase a Tax Credits debtor.

You can choose any of the following modes of payment to repay your Tax Credits debt to Pastdue Credit Solutions:

  • Online payment using a debit or credit card
  • Calling the automated payment line on 0141 447 0002
  • Through a bank transfer or issuing a Standing Order to the Bank of Scotland, using Sort Code: 80 06 14 and Account Number: 06 00 48 31
  • Sending a cheque or postal order to Pastdue Credit Solutions Ltd., 1 Blair Court, North Avenue, Clydebank Business Park, G81 2LA

However, if you believe that you have not been overpaid for your Tax Credits claim or the amount mentioned by Pastdue Credit Solutions in their correspondence with you is incorrect, you can challenge this claim by calling the HMRC on 0345 300 3900 or sending them a Tax Credits overpayment appeal form (TC846). You should do this within three months of finding out about an overpayment.

Why Do I Have To Repay Pastdue Credit Solutions For Tax Credits Debt?

You have to repay Pastdue Credit Solutions for Tax Credit Debt mainly due to the following reasons:

  • You have outstanding Tax Credits debt from being overpaid Child Tax Credit or Working Tax Credit.
  • If you don’t repay a debt collection agency, they can file a court case against you and have a County Court Judgement issued in your name.

If you are wondering why you have been overpaid for your Tax Credits claim in the first place, there are many reasons for this. Some of the common ones are listed below:

  • There was a change in your wages or employment status which would have reduced your Tax Credits payments. However, this change was either not reported to the HMRC or their records were not updated until the end of the financial year.
  • There has been a change in your circumstances that affects your Tax Credits claim. The change either went unreported or was not updated in HMRC records during the year.
  • You have not sent your renewal forms to the HMRC at the end of the year.

What Can Happen If I Don’t Repay Pastdue Credit Solutions For Tax Credits Debt?

If you don’t repay your Tax Credits debt to Pastdue Credit Solutions, they can take the following actions against you:

  • Recover the amount by confiscating it through your benefits payments
  • Take the money through deduction of your wages
  • Take you to court for repayment of dues and a possible fine
  • Send bailiffs to your home who can claim your possessions to repay the debt

If you are still claiming Tax Credits from the HMRC, they can reduce or stop your payments to claim the overpaid amount. If you are not claiming Tax Credits anymore, the HMRC will offer you a 30-day period to pay back the debt. If you think you are unable to pay them back during this time, you should contact them and work out a mutually agreeable repayment plan (these can be spread over 12 months at times).

If you need further advice on debt repayment for Tax Credits, you can get free debt advice from non-profit groups such as Citizens Advice Bureau or StepChange.


The above discussion has outlined the role of a debt collection agency such as Pastdue Credit Collections in the case of overpaid Tax Credits. If you are someone who has been contacted by them to pay back your Tax Credits debt, you should check and update your records as you are most likely to be required to pay your debt to them.


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