Debt Relief Orders (DRO) - Information & help thread

ChocolateTree

I purchased a washing machine on Buy Now Pay Later from a catalogue last October. I am shortly going to be applying for a dro through StepChange, have spoken to them and this is the best way forward for me. I have included it with my other debts but would rather it wasn't on as was hoping to pay for it before the interest free period ends (October). Would this be classed as showing preference to a creditor? I have already paid off some of the balance and I am scared in case they take the washing machine away.

I haven't as yet spoken to an intermediary, have just had the initial action plan. Have found info on Hire Purchase but nothing on BNPL, can anybody help please?

fatbelly

ChocolateTree wrote: »

I purchased a washing machine on Buy Now Pay Later from a catalogue last October. I am shortly going to be applying for a dro through StepChange, have spoken to them and this is the best way forward for me. I have included it with my other debts but would rather it wasn't on as was hoping to pay for it before the interest free period ends (October). Would this be classed as showing preference to a creditor? I have already paid off some of the balance and I am scared in case they take the washing machine away.

I haven't as yet spoken to an intermediary, have just had the initial action plan. Have found info on Hire Purchase but nothing on BNPL, can anybody help please?

As you say, it's not HP, it's just deferred repayment of credit. It must go into the DRO. There are unlikely to be any consequences.

You'll need to be saving for your £90 fee payment.

worn_out

as far as I am aware it is not compulsory to enter all debts on a DRO ..but any you leave off are not then covered by the DRO terms.

wba31

worn_out wrote: »

as far as I am aware it is not compulsory to enter all debts on a DRO ..but any you leave off are not then covered by the DRO terms.

Deliberately failing to include a debt would mean you wish to pay te debt off which would then suggest a preference. Although it may not (or may) say whether it is compulsory or not to include all debts, i think the rules would lean towards that all debts must be included.

Ive checked the guidance notes and they state "
The debtor must be clearly instructed to include all debts that they owe on the application form, including any rent or utility arrears. "

ChocolateTree

Thanks everyone, will pay it off but mention it to the intermediary when I apply, it is listed with my other debts anyway.

Have an even bigger problem now. Was checking credit report (Experian) and one of the debts I have is showing as settled in Feb 2013, balance Nil. It is a joint loan taken out over 13 years ago with an ex partner. Defaulted on it in Dec 2012, have been making token payments for 18 months. When we split I agreed to pay this loan as I couldn't afford monthly repayments on the other debts we had, so he took those and I ended up with this one! Have always paid it up until Dec 2012, when things got so bad I had no alternative but to default on it.

So what should I do about it? If it's been wiped or paid off by my ex then surely I should know about it, or can they try and get the money twice, or is it just a mistake on my credit file? Any help with this would be very much appreciated as this is the main reason I am going down the DRO route. It is with NRAM, unsecured loan, the ones that all the compensation got paid out for (Together, previously linked to a mortgage). I get a letter every month giving me the balance and saying I have been taken off their collection activities for the next 31 days, apart from that have had no correspondence from them. Thanks to anyone who can help me.

ChocolateTree

Forgot to add regards the BNPL it won't actually be a debt until October and I have paid a small amount off it already anyway a few months ago, was given the money for this from my Dad so there is no way I can not pay it really. Nobody knows about our debts, just you peeps on here.

worn_out

wba31 wrote: »

Deliberately failing to include a debt would mean you wish to pay te debt off which would then suggest a preference. Although it may not (or may) say whether it is compulsory or not to include all debts, i think the rules would lean towards that all debts must be included.

Ive checked the guidance notes and they state "
The debtor must be clearly instructed to include all debts that they owe on the application form, including any rent or utility arrears. "

Thanks for the clarification there....

wba31

ChocolateTree wrote: »

Forgot to add regards the BNPL it won't actually be a debt until October and I have paid a small amount off it already anyway a few months ago, was given the money for this from my Dad so there is no way I can not pay it really. Nobody knows about our debts, just you peeps on here.

the Pay Later part of Buy Now Pay Later simply means that they dont expect you to pay yet so it will not appear on statements, it's money you owe and will be included in a DRO

longtermplanner

ChocolateTree wrote: »

Have an even bigger problem now. Was checking credit report (Experian) and one of the debts I have is showing as settled in Feb 2013, balance Nil. It is a joint loan taken out over 13 years ago with an ex partner. Defaulted on it in Dec 2012, have been making token payments for 18 months. When we split I agreed to pay this loan as I couldn't afford monthly repayments on the other debts we had, so he took those and I ended up with this one! Have always paid it up until Dec 2012, when things got so bad I had no alternative but to default on it.

So what should I do about it? If it's been wiped or paid off by my ex then surely I should know about it, or can they try and get the money twice, or is it just a mistake on my credit file? Any help with this would be very much appreciated as this is the main reason I am going down the DRO route. It is with NRAM, unsecured loan, the ones that all the compensation got paid out for (Together, previously linked to a mortgage). I get a letter every month giving me the balance and saying I have been taken off their collection activities for the next 31 days, apart from that have had no correspondence from them. Thanks to anyone who can help me.

I think the only people that can help here are NRAM. Ask them to confirm what your balance is and if it isn't zero, ask them to explain the Experian report.

You don't have anything to lose here because you thought you had this debt and were expecting a DRO. The only way things can change if for the better! They probably won't, but it's worth a try.

ChocolateTree

Thanks for reply longtermplanner, last night I went through all my correspondence from NRAM and it looks like good news! This is the story if you have time to read: took out loan in 2002, split from ex in 2003. Have been making payments (full payments) until Dec 2012 when I defaulted. March 2013 moved to Loss Recoveries process (paying £1 a month). Two weeks later letter asking for repayment proposals balance £9800 approx). Three days later letter "thanks for your payment blah blah". May 2013 letter about redress for loans up to £25,000 saying "however, since then your loan account has been redeemed, meaning this process will now take slightly longer." further down the page "Since your account has redeemed and you are no longer making interest payments each month, the delay will not affect the amount of redress that you are entitled to, if applicable."
May letter thanks for your payment, balance £9800. June letter thanks for your payment £7200.

So, it looks to me as though ex has paid this off in Feb 2013, or it has been scrubbed in Feb 2013. He has probably got the redress, but have no way of knowing for definite. But why am I still paying?

Sorry for long post, almost finished now, am still paying token payments by standing order but obviously this affects the route I am going to take as this debt is approx. 60% of my total debts and now will probably not need the dro, I will probably make token payments instead - at least for now.
I am going to ring StepChange about it today for some advice. Thanks for reading, will post again.