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    • Drohelpneeded
    • By Drohelpneeded 14th Jul 17, 10:00 AM
    • 8Posts
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    Drohelpneeded
    Debt Relief Order - advice needed 're bank
    • #1
    • 14th Jul 17, 10:00 AM
    Debt Relief Order - advice needed 're bank 14th Jul 17 at 10:00 AM
    Hi,

    My husband is currently in the process of setting up a dro via Stepchange. All paperwork has been sent off and he's paid the £90 fee.

    The final thing they've asked him to check, is if he's allowed to carry on banking with his current bank once he has the dro.

    My husband contacted Barclays and they said that it may affect his account - they can't really give him a straight answer.

    So we've been reading up online about it all and as he has a Barclaycard that's in arrears and will be included in the dro, am I right in thinking the safest thing to do would be to open up a new bank account with a different bank?

    My main concern though is that he's now alerted Barclays to what he's doing eg getting a dro. His next set of wages are due to go in on 25th July. I'm worried his account will be frozen or the wages taken from it and put on the Barclaycard to put towards paying that off. If that happens we won't be able to pay our rent and bills.

    My husband has spoken to the finance manager about what the cut off date for changing back accounts is, and the pay has already been processed for July and August so there's no way to change it. The earliest they can do it is for September. (The place closes next week for the summer).

    So does anyone have any suggestions of what we can do? It's frustrating that he's all set to go with the dro as it's paid, but this issue is holding it all up.

    Thanks for any replies
Page 1
    • Guest101
    • By Guest101 14th Jul 17, 10:29 AM
    • 15,128 Posts
    • 14,763 Thanks
    Guest101
    • #2
    • 14th Jul 17, 10:29 AM
    • #2
    • 14th Jul 17, 10:29 AM
    Hi,

    My husband is currently in the process of setting up a dro via Stepchange. All paperwork has been sent off and he's paid the £90 fee.

    The final thing they've asked him to check, is if he's allowed to carry on banking with his current bank once he has the dro.

    My husband contacted Barclays and they said that it may affect his account - they can't really give him a straight answer.

    So we've been reading up online about it all and as he has a Barclaycard that's in arrears and will be included in the dro, am I right in thinking the safest thing to do would be to open up a new bank account with a different bank?

    My main concern though is that he's now alerted Barclays to what he's doing eg getting a dro. His next set of wages are due to go in on 25th July. I'm worried his account will be frozen or the wages taken from it and put on the Barclaycard to put towards paying that off. If that happens we won't be able to pay our rent and bills.

    My husband has spoken to the finance manager about what the cut off date for changing back accounts is, and the pay has already been processed for July and August so there's no way to change it. The earliest they can do it is for September. (The place closes next week for the summer).

    So does anyone have any suggestions of what we can do? It's frustrating that he's all set to go with the dro as it's paid, but this issue is holding it all up.

    Thanks for any replies
    Originally posted by Drohelpneeded

    That's not true. The pay for July, maybe they've processed, but not a chance they've done august. He could be off sick for the next 5 weeks.


    He needs to do a formal change of details at work. These can be changed very easily for payroll
    • Drohelpneeded
    • By Drohelpneeded 14th Jul 17, 10:34 AM
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    Drohelpneeded
    • #3
    • 14th Jul 17, 10:34 AM
    • #3
    • 14th Jul 17, 10:34 AM
    They've said they can't physically do it as there just isn't enough time due to them closing in a few days. Either way, we're screwed either way for July if his account gets frozen 😕
    • sourcrates
    • By sourcrates 14th Jul 17, 11:06 AM
    • 12,421 Posts
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    sourcrates
    • #4
    • 14th Jul 17, 11:06 AM
    • #4
    • 14th Jul 17, 11:06 AM
    Hi,

    Dont worry, creditors are not allowed to seize assets or cash once a DRO has been granted.

    There is no reason for them to freeze his account, it is not bankruptcy.

    The DRO period normally lasts for a year. During the period of your DRO you don't need to make any payments towards the debts listed in the order. The creditors of those debts won't be able to take any action against you either.

    So relax.
    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/
    • Drohelpneeded
    • By Drohelpneeded 14th Jul 17, 11:19 AM
    • 8 Posts
    • 0 Thanks
    Drohelpneeded
    • #5
    • 14th Jul 17, 11:19 AM
    • #5
    • 14th Jul 17, 11:19 AM
    Thanks for the reply. So should he still wait and change bank accounts or should he just tell step change to go ahead and send the application?

    I think the worry is now Barclays know about the dro, that when his wages go in on the 25th, if the dro isn't granted by then that they will take the wages to pay for the credit card.
    • sourcrates
    • By sourcrates 14th Jul 17, 11:42 AM
    • 12,421 Posts
    • 11,822 Thanks
    sourcrates
    • #6
    • 14th Jul 17, 11:42 AM
    • #6
    • 14th Jul 17, 11:42 AM
    Thanks for the reply. So should he still wait and change bank accounts or should he just tell step change to go ahead and send the application?

    I think the worry is now Barclays know about the dro, that when his wages go in on the 25th, if the dro isn't granted by then that they will take the wages to pay for the credit card.
    Originally posted by Drohelpneeded
    Hi,

    Please stop panicking, the system does not work like that.

    Dosent matter what your husband told Barclays, there is a process to be followed, under the terms of the agreement he and they both signed

    You are referring to the right of "set off" by a bank, now whilst its true they could seize the money without warning, it is unlikely to happen.

    Full information here, and how to ask for the money back if they do take it, note, they must leave you with sufficient cash to pay essential bills etc, also if you are in financial difficulties its unlikely this action will be taken anyway :

    http://www.moneysavingexpert.com/banking/setting-off
    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/
    • StopIt
    • By StopIt 14th Jul 17, 11:42 AM
    • 1,371 Posts
    • 1,167 Thanks
    StopIt
    • #7
    • 14th Jul 17, 11:42 AM
    • #7
    • 14th Jul 17, 11:42 AM
    Thanks for the reply. So should he still wait and change bank accounts or should he just tell step change to go ahead and send the application?

    I think the worry is now Barclays know about the dro, that when his wages go in on the 25th, if the dro isn't granted by then that they will take the wages to pay for the credit card.
    Originally posted by Drohelpneeded

    The process is rarely that quick when it comes to the right to set-off.


    However, I'd be setting up a new, non linked bank account today, and telling the payroll debt to change the payment details as a matter of urgency.
    • fatbelly
    • By fatbelly 15th Jul 17, 8:56 PM
    • 11,517 Posts
    • 8,651 Thanks
    fatbelly
    • #8
    • 15th Jul 17, 8:56 PM
    • #8
    • 15th Jul 17, 8:56 PM
    Although I think it's safest to have a new bank account when you've got Barclaycard/ Barclays combo in a DRO, I have a colleague who tells me they don't in practice do set-off between the two.

    That's not to say they couldn't, though.
    • keepcalmandstayoutofdebt
    • By keepcalmandstayoutofdebt 15th Jul 17, 10:49 PM
    • 2,910 Posts
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    keepcalmandstayoutofdebt
    • #9
    • 15th Jul 17, 10:49 PM
    • #9
    • 15th Jul 17, 10:49 PM
    I'm sorry I had a small debt with Barclays in 2012 included in a debt relief order as they wouldn't help (it was for under £15) and the final nail in the coffin as they refused to help in any way to the point of crying outside Barclays in Colchester High Street.

    As advised to me at the time by the intermediary doing the DRO application Barclays did not hesitate to close the account (even being their basic account at the time) down. Straight away.

    Have never banked with them since and never would under any circumstance. The Halifax thankfully retained me from what was an easy cash account as I remember at that time, which was far better then one of those pre paid accounts at the time that it was said I'd end up with but didn't, it is probably the only positive I can offer you.
    "If you are caught in a rainstorm, once you accept that you'll receive a soaking, the only thing left to do is enjoy the walk"
    • Drohelpneeded
    • By Drohelpneeded 17th Jul 17, 5:50 PM
    • 8 Posts
    • 0 Thanks
    Drohelpneeded
    Thank you for all the replies

    To be on the safe side he applied to open a bank account with natwest online. We had some technical problems though so a letter is being sent out this week, and when he's received it we can go in and open the account.

    We clicked the button to do the 7 day switch thing so I was hoping it would happen in time for his payday but doesn't look likely now.

    He has given his payroll department my bank details so I'm really hoping they'll be able to change them in time but we will have to see. He can then give them his new bank details when he goes back to work in September.

    Thanks so much for all the advice
    • fatbelly
    • By fatbelly 17th Jul 17, 5:54 PM
    • 11,517 Posts
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    fatbelly
    Just be aware that Nat West is the only bank that routinely scans the insolvency register to see if any of their customers are insolvent.

    They then downgrade the account to a basic one.
    • Drohelpneeded
    • By Drohelpneeded 18th Jul 17, 11:56 AM
    • 8 Posts
    • 0 Thanks
    Drohelpneeded
    Some bad news today

    We owed some council tax to an old property as they kept changing the reduction entitlement so we were 2 months behind when we left. Wouldn't tell us what we owed until I chased them for 4 months. Then got a judgement letter asking for income. Filled it out and when asked proposed repayment, offered £1 per month as per step change suggestion as they said we couldn't offer more as it may affect us being accepted for dro. Still haven't heard back from them about this.

    Husband is due to be paid on Tuesday and got his payslip today. Council tax of £120 has been taken out.

    I feel sick and I've no idea how we're going to get through the month now. If only it hadn't taken so long to save for the dro fee then the dro would have been in place before this happened
    • fatbelly
    • By fatbelly 18th Jul 17, 7:05 PM
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    fatbelly
    The advice to offer £1 was wrong in my opinion. However, if the council got an attachment to earnings then there's nothing you can do to stop them actioning that. But it must stop if you get a DRO.

    Deductions are done on a proportional basis:

    Net monthly earnings Monthly deductions Deduction rate
    Not exceeding £300 Nil 0%
    Exceeding £300 but not exceeding £550 £9.00 to £16.50 3%
    Exceeding £550 but not exceeding £740 £27.50 to £37.00 5%
    Exceeding £740 but not exceeding £900 £51.80 to £63.00 7%
    Exceeding £900 but not exceeding £1,420 £108.00 to £170.40 12%

    It looks like you're in the 12% band (for this month anyway). Any chance of stepchange getting the application in within the next couple of weeks?
    • hamsterfan1
    • By hamsterfan1 19th Jul 17, 12:11 PM
    • 7,721 Posts
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    hamsterfan1
    w have a DRO and bank with NatWest and have a normal account , they may downgrade it if you go bankrupt though
    • fatbelly
    • By fatbelly 19th Jul 17, 7:22 PM
    • 11,517 Posts
    • 8,651 Thanks
    fatbelly
    w have a DRO and bank with NatWest and have a normal account , they may downgrade it if you go bankrupt though
    Originally posted by hamsterfan1
    Do you have an overdraft facility?
    • Drohelpneeded
    • By Drohelpneeded 20th Jul 17, 4:19 PM
    • 8 Posts
    • 0 Thanks
    Drohelpneeded
    Husband phoned step change yesterday and they were very surprised by what the council had done, especially as they didn't even send a letter. I emailed the council about it, and they said the £1 offer wasn't acceptable, therefore they are able to go straight for an attachment of earnings order but I don't understand how they can do that without telling us £1 isn't acceptable!

    Step change had advised £1 as any more may be seen as us "favouring a creditor" and the dro may have been refused had this been the case.

    Husband told step change yesterday to go ahead and submit the dro application. His payday isn't actually until Tuesday when he'll be minus £120, and then hopefully by the next payday the dro will be in place so the attachment of earnings order can stop. I just don't know how we'll get through this month without that money.

    I don't understand how step change can say we have less than £50 a month spare and therefore eligible to apply for a dro, yet the council can go and take more than double that. It's such a horrible situation and I've been literally worried sick over it. Hopefully the end is in sight and we'll be working very hard to never end up in a mess like this again.
    • fatbelly
    • By fatbelly 20th Jul 17, 7:18 PM
    • 11,517 Posts
    • 8,651 Thanks
    fatbelly
    The council do not have to check what effect an aoe will have. If they have a liability order than can just get one, and the deductions are on the sliding scale. There's no flexibility.
    • Drohelpneeded
    • By Drohelpneeded 22nd Jul 17, 10:36 AM
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    Drohelpneeded
    I'd have thought the council would at least need to write to us to inform us our offer wasn't acceptable though?

    Good news though - I've checked the insolvency register this morning and my husband is showing on there (Well I say good news, It's quite upsetting to see too). I've informed the council as step change said it can take up to 4 weeks for them to tell them, so they said for us to let them know asap.

    Does it matter than this went through on 21st, but the council haven't actually taken the money via AOE until 25th? Or am I clutching at straws?

    Still waiting on new bank account details to come through but hopefully that side of things will be ok.

    I've already put everything we don't need on eBay to pay for husband's dro, but desperately trying to find more things to make my £90 fee to get mike done too. Feels impossible as we are already £120 down this month now but I know the sooner I can get it sorted the better.
    • sourcrates
    • By sourcrates 22nd Jul 17, 11:27 AM
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    sourcrates
    If the DRO is live, and the council have not yet taken the £120, they may not be able to do so, as any form of insolvency cancels out all forms of enforcement action.

    Dont know if CIS is around, maybe he could clarify.
    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/
    • Drohelpneeded
    • By Drohelpneeded 22nd Jul 17, 12:15 PM
    • 8 Posts
    • 0 Thanks
    Drohelpneeded
    It's showing on his pay slip as a deduction so it's been processed before the dro was live, but as his payday isn't actually until the 25th I'm not sure where that leaves us. Step change said they didn't know as they've never heard of this happening?! But seems an aoe order is common so that seems odd!
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