Thousands are being forced to pay back Centrelink. Picture: Matt King/Getty Images

Some doing it tough have been incorrectly referred to debt collectors due to a suspected glitch in Centrelink’s computer system, which has sparked a string of complaints from people being accused of owing Centrelink up to $10,000.

The computer system was put in place six months ago, and it went from sending 20,000 letters a year asking for people to pay back money, to 20,000 letters a week.

When the system detects a disparity, it automatically sends out a letter.

It was put in place so the government could take back money from welfare recipients who were paid incorrectly.

Despite this potentially being a system error, people who receive letters say they are made to feel guilty until proven innocent, and are told to pay the money back.

Independent MP Andrew Wilkie said this suspected glitch had people worried.

“People are terrified about how they will put food on the table or provide Christmas for their kids. My office has spoken to people who are distraught because they have received a threatening letter warning of enormous debt,” he said.

People who either receive Centrelink payments or have in the past are being sent automated letters telling them they owe Centrelink money. Many are outraged and believe it’s a mistake, and they feel they are being accused of rorting Centrelink.

Welfare recipients will be refunded if the system had it wrong.

This suspected system glitch comes just one week after the government said nearly 36,000 people on the dole were rejecting job offers or quitting a new role soon after starting.

Independent MP Andrew Wilkie said some who have been requested to pay thousands back to Centrelink have considered suicide. Picture: AAP/Paul MillerSource:AAP

Mr Wilkie said the Centrelink shambles must be fixed before Christmas.

“It’s been over two weeks since I raised the fact that Centrelink’s new IT system was spitting out numerous incorrect debt notices,” he said in a statement.

“The Federal Government and Minister [Alan Trudge] personally should have swiftly intervened to suspend the system until the problems are sorted out, but so far they’ve done nothing.

“Now here we are four days from Christmas and my office is still being inundated with calls and emails from all around the country telling stories of how people have been deemed guilty until proven innocent and sent to the debt collectors immediately. Many of these debts have been found to be incorrect.

“I’ve now heard stories of debts as high as $10,000 or more. Although the many stories I’ve heard of much smaller debts are equally significant for people on very low incomes.”

Mr Wilkie said several people who contacted his office went as far to say they wanted to commit suicide.

“The Minister for Human Services must step in today personally and direct Centrelink to stop this ham-fisted approach. If the system can’t be quickly fixed then it must be at least deactivated until the problems are sorted out. To let this phantom debt hang over some of the most vulnerable people in society over the Christmas and New Year shutdown period would be grossly irresponsible,” he said.

Last week Human Services Minister Alan Trudge told A Current Affair people who owed money to Centrelink could end up in jail.

Thousands are stressed as they are staring down the barrel of debt.Source:istock

One man expressed his anger at Centrelink on Facebook and said he was accused of cheating the government agency of $5000.

“We should be innocent until proven guilty, not the other way round. Fury,” he said.

Those who were on Centrelink back in 2010 may receive letters requesting paybacks, even if they don’t receive welfare payments anymore.

Brisbane woman Sarah Fielding, 29, told Triple J’s Hack program she had been chased by Centrelink for $4000. She has not received benefits for three months.

“I kept getting calls and I just kept ignoring them because it was a no number and a message came up from Probe (a debt collector) and I thought it was just a spam thing ... but my housemate is an accountant and said ‘they’re legit’,” she said.

“So I rang them up and they said ‘we want $4000 — how are you going to pay it?’

“They said I am a fraud with Centrelink ... it was all a shock to me.

“It’s a huge amount this time of year, plus I have other debt so I’m just like ‘I’m never getting ahead’.”

Hank Jongen encourages people to email him directly if they feel ripped off.Source:Supplied

She has been told to find pay slips from three years ago and thankfully for Sarah, she still has them, unlike many others.

In January this year Centrelink apologised after a computer glitch over the New Year period left more than 70,000 families concerned they were in debt.

When 73,000 families on Family Tax Benefits checked their accounts online, they were told they were in debt, with one mother mistakenly charged more than $700.

Hank Jongen, the general manager of the Department of Human Services and boss of the computer system, has given out his personal email address to directly respond to people having issues with Centrelink.

He is encouraging people to extend the time they have been given to pay for their debt so they can get documentation together to prove why the debt is unfair.

He urges people who feel like they’ve been ripped off to email him directly at hank@humanservices.gov.au.

olivia.lambert@news.com.au