DRO Bank Accounts & Utility's!

coinxoperated

Ok, so I have a few questions! I'm planning on taking out a DRO in March but want to get a few things sorted first.

Firstly, my plan was to open a co-op cash minder account, get all pay paid into that account and transfer all my direct debits over. I spoke to co-op bank and they said that as soon as I go into a DRO ALL my account would be frozen, including theirs. Which would technically mean I can't have a bank account to pay out my bills and have my pay into until I'm accepted?

Something doesn't sound right to me! I'm currently with Santander but I owe them ££ so as they will be included in the DRO I assume they are likely to freeze the account.

Secondly, I took out a cheaper phone contract in October which came with a free iPhone 4. I don't owe the mobile network anything other than my monthly payments that I am up to date with. Will entering a DRO effect this contract?

Thirdly, including Severn Trent Water and British Gas in my DRO but they are also my current supplies for water and electric. How will this work, will they just not mention the debts? Do I continue to pay them in the 12 months I'm in the DRO for the electric/water I'm using? Or do I just 'blank' them for 12 months, save up and pay the last 12 'on the that weren't included in the DRO in a bulk sum?

Thanks in advance for any help given!

coinxoperated

Apologies in advance for spelling errors - dodgy predictive text!

caz2003uk

coinxoperated wrote: »

Ok, so I have a few questions! I'm planning on taking out a DRO in March but want to get a few things sorted first.

Firstly, my plan was to open a co-op cash minder account, get all pay paid into that account and transfer all my direct debits over. I spoke to co-op bank and they said that as soon as I go into a DRO ALL my account would be frozen, including theirs. Which would technically mean I can't have a bank account to pay out my bills and have my pay into until I'm accepted?

Ive not heard of this before, co-op bank is known for being the bank to go to for a cash account when bankrupt so would have been the one to go to...

I had an account with Lloyds TSB....it was only a cash account and of course because of that no debt with them and they didnt close my account, i even contacted them about it before hand and after it was approved but as there was no credit facility they allowed it to stay open

Something doesn't sound right to me! I'm currently with Santander but I owe them ££ so as they will be included in the DRO I assume they are likely to freeze the account.

If there is money owing on the account, you are right to think they will close the account

Secondly, I took out a cheaper phone contract in October which came with a free iPhone 4. I don't owe the mobile network anything other than my monthly payments that I am up to date with. Will entering a DRO effect this contract?

Mobile phone contracts as far as I know unless a debt is including on the DRO for it, it will continue, but bare in mind the monthly cost on your SOA can't be too high. I had my contract and is £25 a month and this was accepted by the IS on my SOA and still have the contract running, of course as there was no debt.

Thirdly, including Severn Trent Water and British Gas in my DRO but they are also my current supplies for water and electric. How will this work, will they just not mention the debts? Do I continue to pay them in the 12 months I'm in the DRO for the electric/water I'm using? Or do I just 'blank' them for 12 months, save up and pay the last 12 'on the that weren't included in the DRO in a bulk sum?

Utilitles tend to close the account with the debt and open you on a new one. I had debts with British Gas for both gas and electric on pre-payment meters and within a few days messages were sent and the debt removed from my meters. The water company closed the account and sent me details for the current year but with a different account number. Once your DRO is approved the debts included on it are not to be paid towards in the morotorium period (normally 12 months) Creditors are not allowed to ask for payments either!

You must pay your current years bills as normal!

Thanks in advance for any help given!

My answers from my experience in red above!

fatbelly

coinxoperated wrote: »

Firstly, my plan was to open a co-op cash minder account, get all pay paid into that account and transfer all my direct debits over. I spoke to co-op bank and they said that as soon as I go into a DRO ALL my account would be frozen, including theirs.

I think Caz is correct on all points.

The co-op adviser is wrong. As long as your cashminder account is in credit (and we'll assume that anything in there is to last you until the next benefit/wage payment) then it is not even entered on the application.

If you have no other debts with the co-op then they won't even know when you get a DRO, unless they intend on doing regular credit checks on you, and that won't happen.

The co-op are usually very good but it sounds as if you got someone not very clued up.

coinxoperated

Thanks both!! I'll try a different co-op person next time!