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was repaying debt and yet still sent to a collections agency

Debt amount: 
$1400
Date debt issued: 
Monday, 9 January 2017
Period debt occurred: 
December 2014 to June 2016
Has your case been referred to a collection agency?: 
Yes
Payment Type: 
Parenting Payment
Appealing Debt?: 
No
Tell us about your debt and how has this affected you? e.g. anxiety levels, financial and accommodation stress: 

After first child and returning to work I applied for the childcare rebate, the dollars that are not means tested and everyone is basically entitled to. This rebate was credited to my own bank account and I thought no issues. When applying for the rebate my application was processed and child care benefit was also awarded (don't have a clue what the benefit is and why it's given) a small sum of roughly $60 per fortnight was credited to my childs day care provider and I was none the wiser. To shed a little light, his fees are $180 per day so I can't say I notice a saving of $60 per fortnight from their invoice. Forward 2 years and in August 2016 I'm notified I've been incorrectly credited this money (again a benefit I knew nothing about) I did agree to pay it back but only to repay in the same manner they gave so $60 a fortnight back to them. My repayments commenced and I thought nothing more of it. On Monday 9.1.17 I received a call from a debt collections agency who now have my debt. I stress without any prior written notice my debt is with them. I have made numerous calls with Centrelink, I've had 3 different reasons for the debt being referred. Regardless of what I say and the actions I've taken it makes no difference.
I've never felt more frustrated in my life than I've felt this week!

How do you feel about the way the Government has handled this process?: 

Their attitude is disgusting. The system is clearly flawed and I question if even legal. My case is insignificant to those who rely on Centrelink and those innocents being ignored and bullied.
Each time I've spoken with Centrelink my call has been escalated to a senior level, this isn't because I've requested it or been aggressive to the staff. It's simply because I have questions they can't handle and they know they've done wrong!