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Centrelink debt letter scandal worsens

5 January 2017
Kate Kachor
nine.com.au Finance

Centrelink is threatening dozens of Australians with bad credit ratings and legal action if they refuse to sign up to payment plans to repay thousands of dollars in questionable debt.

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More than 60 people contacted nine.com.au today claiming they were being hounded by Centrelink. Many shared horror stories of being "pressured" and left "scared" after receiving letters and SMSs demanding money.

Amounts of “debt” sought by Centrelink ranged from $800 to upwards of $25,000 – a combined total of more than $200,000 among those who contacted nine.com.au.

Many who queried the repayment demands were told by Centrelink they would have to sign up to a payment plan even if their claim was under review, in the hope of a refund at a later time.

One individual who said he contacted Centrelink to ask for a review of his claim alleges he was threatened with a "black mark against his name" if he didn't pay up.