concerned for a relative

jasonwatkins

just wondering if anyone can offer any advice ?

was talking to a relative last night who has been looking to apply for a DRO for some time and she told me that now she's finally got the money together to apply for one, she was planning to order a phone from her catalogue account and then apply for her DRO next month, including the catalogue debt with it and essentially getting the phone "free".

i was mortified because my mind immediately jumped to one word - fraud.

she's convinced that once the DRO is granted, nothing will happen and she'll be able to keep the phone as it's "only" around £250 quid apparently.

I'm hoping i can produce something along the lines of a similar case or situation that ended badly so i can show her and talk her out of it, because i'm convinced she's opening up a big can of worms here. i can certainly imagine that littlewoods wouldn't be too happy to find out that a phone was ordered one month and the account was closed due to a DRO the next (or, obviously, whenever the DRO is granted).

if anyone has any ideas or is aware of anything similar then i'd be grateful for the information. i'm googling around at the moment but haven't quite found anything that i could use. thanks

fermi

If I remember correctly, the technical definition of fraud requires that there is an element of "false representation".

i.e. that when obtaining the credit it must be done by providing information that is, or might be, untrue or misleading.

I think because of this unless a creditor asks "do you intend to apply for a DRO etc...?" then it technically just falls short of outright fraud.

Not withstanding the above, obtaining credit in this fashion just before a DRO would certainly be grounds for investigation by the OR and application for a DRO Restrictions Order to extend DRO restrictions for a period of up to 15 years.

The OR would also go over all the proceeding conduct with a fine tooth comb I would imagine.

I also cannot imagine Littlewoods not objecting or reporting the misconduct to the OR.

I also think any approved intermediary is going to be very uncomfortable putting in a DRO application where someone has acted in such a way.

FraudBuster

Although the grounds for objecting to a DRO are quite strict, the official receiver will always consider any evidence from creditors detailing misconduct regarding the debtor’s dealings or property, or suggestions for further explanation or enquiry.


http://www.bis.gov.uk/insolvency/personal-insolvency/dro-creditors

jasonwatkins

FraudBuster wrote: »

Although the grounds for objecting to a DRO are quite strict, the official receiver will always consider any evidence from creditors detailing misconduct regarding the debtor’s dealings or property, or suggestions for further explanation or enquiry.


http://www.bis.gov.uk/insolvency/personal-insolvency/dro-creditors

Thankyou, that's ideal. I've printed it out and will show my relative when I see her next week.