Insolvency and the Enterprise Act
It will take some time to pin this issue down. However, what I have found so far is that the Insolvency Service is selling people's debts.
It writes a letter to them saying we are selling your "debt for £xxxxx (we do not know how much it is". This, of course, causes rather a lot of confusion.
I could understand the concept that they are sub-contracting in part the process of working out how much the debt is. However, to tell someone that they owe some money, but they are not sure how much it is, and it has been sold to someone else and then that they may have to sell their house, is a bit cruel.
This must affect a few thousand people nationally. Tax Credits appear to still be mired in chaos.