StepChange changing their DebtRemedy advice?

lepidopterist

Hiya.

A couple of months back, i completed Stepchange's DebtRemedy calculator doohickey, and it told me I should apply for a DRO. I didn't want to at that stage, and didn't.

I've just completed it again, and it's now telling me that I should apply for repayment agreements with my creditors. My situation has not improved in the intervening period, and I absolutely fulfill all the criterria (Debts in excess of 10k, no assets, on HB/JSA). Is this some kind of austerity-related cutback?

woodgreen2013

lepidopterist wrote: »

Hiya.

A couple of months back, i completed Stepchange's DebtRemedy calculator doohickey, and it told me I should apply for a DRO. I didn't want to at that stage, and didn't.

I've just completed it again, and it's now telling me that I should apply for repayment agreements with my creditors. My situation has not improved in the intervening period, and I absolutely fulfill all the criterria (Debts in excess of 10k, no assets, on HB/JSA). Is this some kind of austerity-related cutback?

I am in the same boat. I could easily do that DRO. Its much simpler than bankruptcy, as long as you are poor and havent got any investments or assets. As long your car is old and not worth much, then I thought it would be my best bet.

But they are strongly advising me to keep paying £1 per month to each creditor. I at least want to consolidate all my loans so I only pay 1x £1 to one big one.

I suspect they are doing everything they can because of the global crisis.

Anondebtadvisor

I fail to see how it can be in either of your best interests to do make token payments when you qualify for a DRO! How can stepchange make this suggestion!

If you believe you qualify for a DRO go to another agency, for example Payplan or your local Citizens Advice Bureau.

It is annoying that Stepchange would rather have you paying £1 per creditor for the rest of your life than go for a DRO!

[Deleted User]

I was told to do the £1 thing a year ago but was on the understanding my creditors could eventally go for CCJ's, my creditors were not accepting, I had to go to a non charity who told me it was bad news letting it go this way (a judge does not go there there and write of debt a CCJ can include all extra charges) so fortunately they helped in a DRO

When this charity changed it's name it wrote to me saying I qualified for a debt relief order!! :eek:

Although they wern't one of the worst in their suggestions...

Anondebtadvisor

I agree paying £1 per month should not be a long term solution.

It makes you wonder in whos best interests they are acting? the debtor or creditor?

Seek advice elsewhere regarding a DRO if you are not happy with the advice you are being given at Stepchange

fatbelly

Ultimately it's your decision, and an Intermediary cannot refuse to assist in submitting a DRO, though there is a box to tick to say that they did not agree with the decision.

I can't comment on StepChange's policies and, if I start to speculate it will take this thread in a different direction.

Token offers are certainly not a sensible long-term solution, and for many, don't even make sense as a short-term one.

If someone is planning to go for a DRO I do not suggest token offers as I do not see the point. They need to get the £90 together and every pound helps. Even if a token offer would prevent court action (and I don't believe that's true) the timescales for getting to an enforcement stage would mean that the DRO would almost certainly block that anyway.

All you have to do with your creditors in the run up to a DRO is to treat them equally and in my view the best way to do that is to pay them all nothing.

There are occasions when the timing of a DRO is important. For example, and this is relevant at the present time, many low income/small debtors were hit on 1 April with a Council Tax demand for 2013/14 due to the localization of Council Tax Support. That debt cannot go in to a DRO until the right to pay in instalments has been lost, which is only happening around now (mid/end May), so it makes sense to wait until the whole year can go in.

Every case has some unique factors and a program like Debt Remedy can only be indicative. You need to talk to an Intermediary.

lepidopterist

Thanks for the advice, very helpful!

I was probably going to ignore the DebtRemedy thing anyway, and it's good to have that confirmed as the probable best course. StepChange's change of advice threw me for a loop, though, and I'm very curious as to the reasons why they might have done that. I appreciate that you can't comment on Stepchange's policies, fatbelly, but I take it there's not some wider trend of DRO intermediaries trying to reduce the number of DROs they give out?

I ask because shelling out £90 and getting turned down would be a disaster. Obviously, I'm not asking you to guarantee I'd be successful, but would be interesting to hear if DROs are - generally speaking - becoming harder to obtain...

Many thanks!

fatbelly

Hi Lepi

This will be my last post for a week or so but there are other intermediaries on this board that might comment.

DROs have not changed. The vast majority are accepted because Intermediaries are pretty good at spotting the problems before they submit an application. If you meet the basic criteria (and it sounds like you do) then you should be OK.

A change that may affect the numbers of DRO applications is that most of the applications so far have been done through the CAB, and many of their Intermediaries were LSC funded. That funding was changed so radically by the government from 1 April that CABs have had to lay off staff and cut hours, and that will have an impact.

wba31

lepidopterist wrote: »

Thanks for the advice, very helpful!

I was probably going to ignore the DebtRemedy thing anyway, and it's good to have that confirmed as the probable best course. StepChange's change of advice threw me for a loop, though, and I'm very curious as to the reasons why they might have done that. I appreciate that you can't comment on Stepchange's policies, fatbelly, but I take it there's not some wider trend of DRO intermediaries trying to reduce the number of DROs they give out?

I ask because shelling out £90 and getting turned down would be a disaster. Obviously, I'm not asking you to guarantee I'd be successful, but would be interesting to hear if DROs are - generally speaking - becoming harder to obtain...

Many thanks!

Like fatbelly I cannot comment on Step Change policies, but the Debt Remedy tool is simply that, an online tool. If it doesnt seem right give them a call and they can overwrite it.

I said in a different post that I know someone who works in their DRO team and they take them pretty seriously, and are certainly not interested in reducing the number of people that apply for them.

Any intermediary worth their salt will be doing all the work necessary to make sure that if you are applying for a DRO, any potential issues will have been highlighted to you to make you aware. I for one dont want to be lapse in any advice necessary as it's my name and my intermediary ID that goes against the application.

lepidopterist

That's good to know. I'll give StepChange a call today. Thanks!

Depth_Charge

wba31 wrote: »

Like fatbelly I cannot comment on Step Change policies, but the Debt Remedy tool is simply that, an online tool. If it doesnt seem right give them a call and they can overwrite it.

I said in a different post that I know someone who works in their DRO team and they take them pretty seriously, and are certainly not interested in reducing the number of people that apply for them.

Any intermediary worth their salt will be doing all the work necessary to make sure that if you are applying for a DRO, any potential issues will have been highlighted to you to make you aware. I for one dont want to be lapse in any advice necessary as it's my name and my intermediary ID that goes against the application.

Hi

But does not the Stepchange tool make recommendations as to the debt solution and if the person using then does not contact them as a result and follows the recommendations, then what?