The fact that they are recovering from your tenant's ongoing entitlement, does not necessarily mean that they are holding your tenant responsible for the overpayment. It could be you, that they are holding responsible, but they are chosing to recover the amount via the ongoing HB.
You need to check 'who' they are holding responsible in the first instance. If it was the tenant, then they are clearly shifting the responsibility onto you. It seems to be a bit naughty to do that for the reason that you state.
However, I would think it is at least good practice to notify you of their change of recovery target at the very least and probable that you should receive a Sch 6 compliant letter at that stage.
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