Tenant on benefits but want to pay cash

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  • #16
    I agree with theartfullodger. It sounds suspicious. Of course, as other posters have pointed out, there are people who have an old-fashioned preference for handling cash. However, it sounds as if these are are not the terms on which took the tenancy. Now she's been there for 1.5 months she's changed her mind! I'd insist that she pays by DD as agreed initially, or else it could end up very messy.

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    • #17
      Sounds to me like a possible cash income not being declared so as to avoid losing housing benefit.

      The problem is that if that is the case they may come after you for the HB paid in error.

      ML
      Refer Mad Regulators to Arkell vs Pressdram.

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      • #18
        Hi,

        Paying by cash is quite common amongst LHA tenants; doesn't mean there's something fishy or they're more like to default. Interstingly, in the 6 Universal Credit "demonstration projects" around 54% of those tenants participating preferred to pay by that method. Obviously, compared to DD or BO, not what the LL would like but as we all know a DD can be cancelled in an instance or if the funds are not there will fail and createc charges. The best advice is to watch them closely and if there's any suggestion of a missed payment write to the council explaining she is in breach of her tenancy obligations and ask for re-direction of the LHA to you even if only a month arrears exist.

        HBadvocacy
        www.hbadvice.co.uk
        www.ucadvice.co.uk

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        • #19
          mdlandslandlord #17 It is written into my TA that any overpayments of HB are recoverable from the T not LL.

          hbadvocacy #18 yes I think it is a good idea to ask for HB to be paid before the 8 weeks of arrears. This alerts HB to the fact that there might be a problem arising.

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          • #20
            Belingogirl,

            It makes no difference to the Q of liability if you've built something into your TA about HB Overpayments. If you've received payment of HB and are at least at part to blam for the OP the council may still ignore the TA provision and pursue you.

            The same equally applies to the Q of "direct payments". A number of LLs build provisions into TAs requiring tenants to pay them HB direct. The Q of payment is however the clealry in the provence of the Council, not the tenant, so again the Council need not play any heed to the agreement between tenant & landlord/agent.

            HBadvocacy
            www.hbadvice.co.uk
            www.ucadvice.co.uk

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            • #21
              Hi

              I am a tenant who pays cash into my landlord's account.

              I do this for two reasons:

              1 - I prefer to make sure the money has gone in...I once had a very angry landlord telephone me to accuse me of not paying my rent in one month (had been set up by standing order) I had to faff around ringing banks and eventually go into town and speak to someone over the counter, it turned out the account the landlord had requested to be paid into was an ISA and he owed tax from the previous year for going over the allowed tax-free amount. The money which had been taken from my account was being held in the bank's holding account. Now I like the idea of physically handing the cash over and getting a receipt.

              2 - I am one of those people who prefers to take out cash and pay all my bills this way so I know exactly what's going out of my account and when.

              I have to say though that I would never refuse to set up a standing order to pay rent. If my landlord prefered that method then I would do just that.

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