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    • Pickles02
    • By Pickles02 7th Oct 17, 12:00 PM
    • 10Posts
    • 0Thanks
    Pickles02
    DRO Questions
    • #1
    • 7th Oct 17, 12:00 PM
    DRO Questions 7th Oct 17 at 12:00 PM
    Hello there,

    I want to be prepared for when I call Stepchange later so I have questions regarding DRO’s and my circumstances.

    Q1. I have an overdraft limit of £50. The question was asked on their online form, I dip into it most weeks but clear it every 7 days so it’s up to date and fine. My SOA came to 0 hence why I use it sometimes. Will I be forced to close my account or to ask my building society to remove my overdraft?

    Q2. I have a mobile contract for 2 handsets both my teenager and mine. I’ve never been late and I’m up to date with payments. My bill is 75 p/m including insurance so very high. I can't afford to pay off the contract early. Are mobile phone companies made aware of DRO's and will this affect my application?

    Q3. I took a payday loan our last month to buy school uniform. I cleared it a few weeks later. Does this mean I've messed up my chances?

    Q4. Does a DRO affect car insurance, is there a risk it will increase or that I won't be accepted by some companies? I noticed my credit file had searches made when doing a price comparison.

    Q5. My car is coming up at £805 private poor on parkers and £1080 on AutoTrader private guide price. However, it's a CAT D and there were no options to change it. Do you think it’s worth taking pictures? I have no paperwork to prove this, I wasn't given any when I bought it but you can see were the bodywork was panel beaten. Are 2 quotes enough?

    Q6. Lastly, do I add closed accounts to my claim? They are marked settled/satisfied on my credit file but not sure what that means.

    Apologies for all the questions, I just want to be certain of things
    Last edited by Pickles02; 07-10-2017 at 12:03 PM. Reason: spelling and grammer
Page 1
    • Pickles02
    • By Pickles02 7th Oct 17, 12:32 PM
    • 10 Posts
    • 0 Thanks
    Pickles02
    • #2
    • 7th Oct 17, 12:32 PM
    • #2
    • 7th Oct 17, 12:32 PM
    In all honesty, I completely forgot about taking the loan last month. It was through a payday loan company for students, I had to send them proof of my student loan and bursary awards. It was taken the day my loan went in. I now fear I've lost my chance and it'll be viewed as preferential treatment to a creditor.

    If that's the case how long should I wait before applying?
    Last edited by Pickles02; 07-10-2017 at 4:57 PM.
    • ToxtethO'Grady
    • By ToxtethO'Grady 7th Oct 17, 7:37 PM
    • 79 Posts
    • 38 Thanks
    ToxtethO'Grady
    • #3
    • 7th Oct 17, 7:37 PM
    • #3
    • 7th Oct 17, 7:37 PM
    Hi Pickles

    I'll try and answer as best I can.

    Q1. Not close your account however your bank/building society may remove the overdraft. There's no issue with you using the overdraft during your DRO as you had it before and it's not over £500 of credit. But your DRO will be on the insolvency register and is public record so they could check themselves. Discuss it with them so you know what they will do.

    Q2. Like your overdraft if you're in contract it shouldn't affect it however if you come to upgrade during your DRO will be on your credit search so you may have to go SIM only or pay as you go.

    Q3. This could be classed as a preferential payment as you've cleared 1 debt over your other creditors. This could be the main reason a DRO application from yourself would be turned down but you can explain that it was for school uniform. It might pay to wait a few months just to be sure its not an issue.

    Q4. A DRO is a form of insolvency so it would be up to the insurance companies of how they manage that, some won't be bothered as a DRO is classed slightly differently to BR. Others may not allow you due to the DRO on your credit history. I don't think it will increase your insurance it will be more about being accepted by insurance companies so you'll have to shop around.

    Q5. Your average valuation then is £902.50, you will be asked for your registration and they'll check Parkers so I think you'll be alright.

    Q6. You'll be asked to provide a credit report and if they show as settled or satisfied in the last few months and they are to the detriment of other creditors it may affect you like the payday loan.

    Hope this helps
    • fatbelly
    • By fatbelly 7th Oct 17, 8:18 PM
    • 11,518 Posts
    • 8,653 Thanks
    fatbelly
    • #4
    • 7th Oct 17, 8:18 PM
    • #4
    • 7th Oct 17, 8:18 PM
    Hello there,

    I want to be prepared for when I call Stepchange later so I have questions regarding DROís and my circumstances.

    Q1. I have an overdraft limit of £50. The question was asked on their online form, I dip into it most weeks but clear it every 7 days so itís up to date and fine. My SOA came to 0 hence why I use it sometimes. Will I be forced to close my account or to ask my building society to remove my overdraft?

    Q2. I have a mobile contract for 2 handsets both my teenager and mine. Iíve never been late and Iím up to date with payments. My bill is 75 p/m including insurance so very high. I can't afford to pay off the contract early. Are mobile phone companies made aware of DRO's and will this affect my application?

    Q3. I took a payday loan our last month to buy school uniform. I cleared it a few weeks later. Does this mean I've messed up my chances?

    Q4. Does a DRO affect car insurance, is there a risk it will increase or that I won't be accepted by some companies? I noticed my credit file had searches made when doing a price comparison.

    Q5. My car is coming up at £805 private poor on parkers and £1080 on AutoTrader private guide price. However, it's a CAT D and there were no options to change it. Do you think itís worth taking pictures? I have no paperwork to prove this, I wasn't given any when I bought it but you can see were the bodywork was panel beaten. Are 2 quotes enough?

    Q6. Lastly, do I add closed accounts to my claim? They are marked settled/satisfied on my credit file but not sure what that means.

    Apologies for all the questions, I just want to be certain of things
    Originally posted by Pickles02
    1. Provided your account is not overdrawn on the 'day of determination' - normally 2 days after the application is submitted - it is not a debt, does not need to be listed and you should be able to continue using it. However, if it is Nat West they will see that you are in a DRO and change your account to a basic one with no overdraft facility. You need to get yourself into a position where you do not need to use an overdraft. If that means waving goodbye to this account and putting it in the dro as a debt, so be it. Obviously get your new account now, before the dro and give yourself time to get everything important transferred over.

    2. Only creditors (your debts) are informed of the dro. However, a mobile contract for your son would not be an allowable expense.

    3. No

    4. Not usually (but can't say never)

    5. private poor on parkers is the correct version.

    6. If it's a debt you add it. Sometimes an account shows as closed on your file because it has been sold to a third party. In that case, you list it as a debt to the debt buyer.
    • sourcrates
    • By sourcrates 8th Oct 17, 1:31 PM
    • 12,432 Posts
    • 11,837 Thanks
    sourcrates
    • #5
    • 8th Oct 17, 1:31 PM
    • #5
    • 8th Oct 17, 1:31 PM
    Hi,

    I think you may be overthinking this a tad, they take your word for your outgoings, and car values, you don't need to include pictures.

    Insurances will not normally be effected by a DRO, however off springs mobile bill may have to become "trouser fund" or something of that ilk to pass muster.

    Be creative.

    You are not credit checked for upgrades by your network either, so if your contract comes to an end during the moratorium period, you will be able to upgrade ok.

    New bank account a necessity i would say, also any debt you suspect hasn't been paid, no matter if its closed or not, include it, just to be certain.
    Last edited by sourcrates; 08-10-2017 at 1:36 PM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • Pickles02
    • By Pickles02 8th Nov 17, 9:11 AM
    • 10 Posts
    • 0 Thanks
    Pickles02
    • #6
    • 8th Nov 17, 9:11 AM
    • #6
    • 8th Nov 17, 9:11 AM
    Hi, I'd like some advice regarding my £50 overdraft.

    I would like to keep it if I can. I've opened a basic bank account elsewhere in case my other one is closed by the bank.

    However, I've been told by Stepchange to get rid of the overdraft facility (I haven't used it in a month and no arrears).

    Obviously, I don't want my application to be rejected and will remove it to get the DRO if I have to. But I'd like to know what'll happen if I initially say no? I'm able to have up £500 credit so why are they so adamant that I get rid of it? Will the official receiver check my credit report, see it on there and reject my application?
    • StopIt
    • By StopIt 8th Nov 17, 9:37 AM
    • 1,371 Posts
    • 1,169 Thanks
    StopIt
    • #7
    • 8th Nov 17, 9:37 AM
    • #7
    • 8th Nov 17, 9:37 AM
    Hi, I'd like some advice regarding my £50 overdraft.

    I would like to keep it if I can. I've opened a basic bank account elsewhere in case my other one is closed by the bank.

    However, I've been told by Stepchange to get rid of the overdraft facility (I haven't used it in a month and no arrears).

    Obviously, I don't want my application to be rejected and will remove it to get the DRO if I have to. But I'd like to know what'll happen if I initially say no? I'm able to have up £500 credit so why are they so adamant that I get rid of it? Will the official receiver check my credit report, see it on there and reject my application?
    Originally posted by Pickles02

    As stated above, you may not get the chance to choose.


    Most banks will close any overdraft facility once you enter an insolvency, including a DRO.


    And yes, you'll need to declare it to the OR if you owe anything on the overdraft when you apply for the DRO. Either way, it'll be on your credit report so the OR WILL find out.


    It's only £50, find other ways to manage your money without it.
    • fatbelly
    • By fatbelly 8th Nov 17, 7:13 PM
    • 11,518 Posts
    • 8,653 Thanks
    fatbelly
    • #8
    • 8th Nov 17, 7:13 PM
    • #8
    • 8th Nov 17, 7:13 PM
    As I understand it you have an overdraft facility with your current account and it is not overdrawn at present. My previous comment was:

    1. Provided your account is not overdrawn on the 'day of determination' - normally 2 days after the application is submitted - it is not a debt, does not need to be listed and you should be able to continue using it. However, if it is Nat West they will see that you are in a DRO and change your account to a basic one with no overdraft facility. You need to get yourself into a position where you do not need to use an overdraft. If that means waving goodbye to this account and putting it in the dro as a debt, so be it. Obviously get your new account now, before the dro and give yourself time to get everything important transferred over.
    In addition to that, if it is connected to any debt in your DRO, the overdraft facility will be withdrawn.

    If it isn't connected and isn't overdrawn it will be of no interest to the DRO team and, if it isn't Nat West, the bank will have no knowledge of your DRO.
    Last edited by fatbelly; 08-11-2017 at 7:22 PM.
    • Inch High Private Eye
    • By Inch High Private Eye 18th Nov 17, 1:29 PM
    • 32 Posts
    • 24 Thanks
    Inch High Private Eye
    • #9
    • 18th Nov 17, 1:29 PM
    • #9
    • 18th Nov 17, 1:29 PM
    Pickles you've written payday loans, can i ask if your employed? and if so did step change still help you OK with your DRO application.
    • sourcrates
    • By sourcrates 18th Nov 17, 2:25 PM
    • 12,432 Posts
    • 11,837 Thanks
    sourcrates
    Pickles you've written payday loans, can i ask if your employed? and if so did step change still help you OK with your DRO application.
    Originally posted by Inch High Private Eye
    Being employed or not has no bearing on a DRO application.

    You were told what the DMC wanted you to hear, a bunch of down right lies it appears.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
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