Santander/Halifax Unarranged Overdraft Charges and DRO

coinxoperated

Hi,

I'm in the process of starting my application for a DRO. In the meantime I've changed my banking to a co-op cashminder account. I owe £1330 to Halifax and £1330 to Santander. I'm currently paying £31 a month to Halifax to keep my overdraft in its arranged overdraft position (they charge £1 per day..)

I've today gone over on my Santander account by £27. I know they are about to blast me with charges and I also know that I will not have enough money to pay this off.

So... When I apply for a DRO what happens with these bank charges? Obviously I'll include the amount I owe up to the day of the DRO application, but while I'm in the DRO they will be charging £1 a day each every day while the account is overdrawn.

Therefore, Technically, at the end of a 12 month DRO I will have to pay them £365 each?

I'm so confused. I have my 'advisor' calling me tomorrow evening from CCCS to get the ball rolling, but in truth, I'm petrified that I'll miss something or something won't quite go how I think it will.

Any advice would be greatly appriciated.

Thanks

ladyday

If you are not sure of the exact amounts owed with interest being added daily you can slightly over estimate the total owed to cover yourself against any last minute charges they might add on before the DRO is granted. If the figures on your DRO application are less than the amount owed on the day your DRO is granted you will be liable for the extra amount.

Once the 12 months of the DRO has ended any extra charges they may have added during that time will disappear along with the original debt.

Make sure you check and clean up your credit files a couple of months after the DRO has ended - see https://forums.moneysavingexpert.com/discussion/677875

Good luck!