DRO and car thats not the DRO applicants?

brians_daughter

Hi all,

I'm a 'mentor' and therefore help vulnerable or needy students. I am helping a lady at uni to find out more info about DRO's. Its something i have never come across before, my usual areas are finding suitable family housing or nursery places etc so I am very out my depth, but wanting to provide support where i can.

She's struggling financially and after speaking to one or two companies regarding options a DRO has been mentioned. She is off to see the CAB next week, she's issues with stress and being out in unfamiliar places alone so i am going with her. She's brought all the info in to me and looking at her outgoings she does seem to qualify, as she's a p/t student she doesn't get a student grant/loan for living expenses etc.

Anyway, to my question. She had a car accident about 7 weeks ago, the car was written off and the money she got had to be split between her and her ex as it was a joint purchase. She was left with no vehicle and due to the excess which came from her 1/2 etc she wasnt able to raise money to buy a replacement car. A close friend of the family was about to buy a new car and was going to sell their old one. She offered the lady use of their old car with the understanding that when she was back on her feet she would either buy the car from her or hand it back. the car value on parkers is £2,500.

The car has been registered in the name of the lady seeking the DEO on the V5, but she's been told by one company this would be classed as an asset, by another it wouldn't as its not her car to sell.

I've suggested that we will ask the CAB next week, but next week seems a long way away for her. I mentioned giving the car back to the owner and doing without, but a car is 100% needed. Reasons being (if it matters) one of her dependants goes to a special needs school which would mean 6 buses return journey twice a day to take her to school. She works 2 pt jobs and starts one job within 30 mins of the other ending bus journey would be 50mins.

So, in a nutshell can anyone help me to help her? Will the car be classed as hers or not? The friend who's loaned it to her is in a very highly thought of job role and could and would easily write to whoever to state these facts ie it's a temporary loan of a vehicle until shes in a position to buy her own/buy that one from her.


I'm trying to gather some positive information for her before she leaves the campus for the day

TIA

Anna

fatbelly

The registered keeper is not necessarily the owner. As long as the owner is prepared to confirm ownership, the car does not count as an asset. The debtor just has 'use of a car she does not own.'

brians_daughter

fatbelly wrote: »

The registered keeper is not necessarily the owner. As long as the owner is prepared to confirm ownership, the car does not count as an asset. The debtor just has 'use of a car she does not own.'

THANK YOU for sharing this. one of the organisations she spoke to agreed with what you said, the other said it would be classed as an asset? I will pass the message on, hoping it will ease her mind a little

Anna x