Debt Relief Orders (DRO) - Information & help thread

istanbul_2

just a quick question hope some one can help. i had two phone calls from creditors and i have said cab are dealing with it. they were asking for a reference number should i ring cab and ask for reference number as ive not been given one? thanks

fatbelly

istanbul wrote: »

just a quick question hope some one can help. i had two phone calls from creditors and i have said cab are dealing with it. they were asking for a reference number should i ring cab and ask for reference number as ive not been given one? thanks

Yes - there will be a reference number and it will be on the next letter the CAB send to you (and on the letters to creditors). If you phone, they'll telll you.

We can't normally allocate one during the initial interview so what I do is make something up for the client (something that makes sense to me) so they can give something to the creditor if asked.

fermi

http://www.bailii.org/ew/cases/EWCA/Civ/2010/1431.html

Having considered the Secretary of State's arguments, I end where I began. The debts owed by Mrs Payne and Mrs Cooper to the Secretary of State were "qualifying debts" and were specified in the DROs. For the Secretary of State to recoup those debts by deducting the amount owed, or a portion of it, from subsequent benefits would be to exercise a "remedy in respect of the debt" in the ordinary meaning of those words, contrary to s251G(2)(a). I do not consider that this interpretation conflicts either with the overall purpose of the DRO scheme or with the particular purpose of the moratorium period. My reasoning is in substance the same as that of Cranston J and I would dismiss the appeal.

debt_doctor

.......... and would you believe it - the DWP immediately appealed again !!

We intermediaries have had a close eye on this one. Lets hope its third time unlucky for the DWP. In the meantime DWP can continue to take deductions from benefit at a rate that should not cause hardship during the DRO moratorium period. The remaining balance of any overpayment would then be wriiten off after the moratorium period.

If DWP lose (again) then deductions must cease immediately DRO is granted.

DD

debt_doctor

Housing Benefit and Council Tax Benefit

Urgent Bulletin

Department for Work and Pensions, 1st Floor, Caxton House, Tothill Street, London, SW1H 9NA
http://www.dwp.gov.uk/local-authority-staff/housing-benefit/
HB/CTB U1/2011 10 January 2011
Contact
­ Queries about the
· distribution of this bulletin, contact Corporate Document Services Ltd Orderline
­ Email: [EMAIL="orderline@cds.co.uk?subject=HB/CTB%20Bulletins"]orderline@cds.co.uk[/EMAIL]

­
Who should read
­ All Housing Benefit (HB) and Council Tax Benefit (CTB) staff
Action
­ Important updated information on Debt Relief Orders and Overpayments recovery

Debt Relief Orders and Overpayment recovery
1 This bulletin follows on from U5/2010, which gave information on recovery of Housing Benefit (HB) and Council Tax Benefit (CTB) overpayments by making deductions from ongoing benefit during the period of a Debt Relief Order (DRO).
2 The Court of Appeal found against the Department on 14 December 2010 in SSWP v Payne & Cooper. Whilst we are planning to appeal to the Supreme Court, application was made for a stay of the Court of Appeal’s judgment. Although the stay has been granted, legal advice is that the stay of judgment is limited in its scope: the stay, pending the Supreme Court appeal, provides a stay only in respect of repayment of those monies recovered during the moratorium period; it does not give the right to continue deductions from benefit during the moratorium period.


Action to take
3 Recoveries from benefit for DWP Debt, Social Fund debt and HB debt (collected by Local Authorities) must cease with immediate effect where the debt is subject to a DRO. To do otherwise runs the risk of being found in contempt of court. Do not refund deductions which have been made.
4 U5/2010 para 3, advised LAs that if they decided to continue to make recoveries by deductions from ongoing HB, CTB or any prescribed DWP benefits, where the overpayments have been included in a DRO, a list of affected cases should be kept. You should continue to record affected cases.
5 Further guidance will be issued once the outcome of the application to the Supreme Court is known.

fatbelly

Boomin eck, DD. That was fast. I got the e-mail at 10.24!

debt_doctor

fatbelly wrote: »

Boomin eck, DD. That was fast. I got the e-mail at 10.24!

..... I was about to ring the CSA when the e-mail flagged up - always happy to do something,anything, other than ring the CSA !

DD

sicko666

Is this true the CAB will no longer deal with DRO's?

History:
After applying for a DRO through the CAB in late november,recieving a bunch of forms,3 of which were to be sent off to credit report companies.I filled in the forms to the credit reference companies posted them, recieved 2 back almost immediately,the third nothing .I tried to contact "Karim" at the CAB (whose email i recieved in the letter with the forms) about if 2 were enough or all 3 were needed first ,2 emails later no responce,then the snow hit and thought i had better give time for the post delay ,sent another email to CAB's "Karim" and got a "can not deliver" messeage from hotmail.Searched through all my letters looking for the letter i recieved the year before about getting a DRO, emailed that person at the CAB instead , (and got a responce the next day!), she informed me she dosent do DRO's anymore and has arranged a consultation with "Edwards Duthie Soliciters" at the CAB office instead.....
Dosent the CAB deal with DRO's anymore? Even if my DRO was applied for in November but was the credit refference report companies fault & a non responsive CAB members fault, not my own that it wasnt submitted online in November? More importantly to someone with no money, how much does this now mean i will have to pay these soliciters? Bad,bad,experiances with lawyers in the past is the main reason i am now so dam scared about this! ( i had to use the CAB in the past because of bad lawyers demanding money in the past,and now the CAB is sujesting i use some lawyers for this DRO!!!!! )

yoshua_2

Hi all,

I have had my first draft application since September, but have only just managed to come up with the £90 application fee, which I am going to pay in the next few days.

The thing is, when I applied for my DRO I was unemployed and on Job Seekers Allowance. I have now managed to find part time employment with a wage of £552 Per Calendar Month.

I will need to pay the £90, then contact CCCS and amend the application form before it gets sent off.

I will obviously be asked questions about my new Income and Outgoing. Does this seem reasonable?

I live at home, with my parents who are on Incapacity Benefit. They don't have to pay rent, but because I work I have to pay them rent.

Income: 6500 Salary = 541 PCM

Rent: 200
Food: 140
Phone: 25
Bus Ticket: 60
Electricity+Gas: 20
Haircut: 15
Internet: 25

That leaves me with 58 per month excess cash, which is obviously too much. I know I don't have that much spare a month, so I can't think what else to add to the outgoings.

Some help would be appreciated

wba31

yoshua wrote: »

Hi all,

I have had my first draft application since September, but have only just managed to come up with the £90 application fee, which I am going to pay in the next few days.

The thing is, when I applied for my DRO I was unemployed and on Job Seekers Allowance. I have now managed to find part time employment with a wage of £552 Per Calendar Month.

I will need to pay the £90, then contact CCCS and amend the application form before it gets sent off.

I will obviously be asked questions about my new Income and Outgoing. Does this seem reasonable?

I live at home, with my parents who are on Incapacity Benefit. They don't have to pay rent, but because I work I have to pay them rent.

Income: 6500 Salary = 541 PCM

Rent: 200
Food: 140
Phone: 25
Bus Ticket: 60
Electricity+Gas: 20
Haircut: 15
Internet: 25

That leaves me with 58 per month excess cash, which is obviously too much. I know I don't have that much spare a month, so I can't think what else to add to the outgoings.

Some help would be appreciated

you can put down more for food. it should be fine. Ring your intermediary and update the budget and you should be ready to go. i think CCCS will want you to quickly ring round each of your creditors to get your most up to date statement before they submit so do that before you call them