Threat of debt action must stop: Wilkie

Welfare recipients are being incorrectly referred to debt collectors due to a glitch in Centrelink's computer system, a federal politician says.

Independent MP Andrew Wilkie has called on the government to urgently fix the problem, which has sparked a string of complaints from people who are being accused of owing up to $10,000.

"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 an enormous debt," Mr Wilkie said.