can creditors refuse a DRO?

stef787

I am applying for a DRO through stepchange and I included a Credit card which was used recently (Within the last month).

Has anyone had a DRO refused because of this?

thanks

misschatterbox

No it can't be used because of that, I was using my H&M account up to a month before my DRO and it was still granted.

The only reason you may not get a DRO granted at all is if you were not paying your other debts but were still paying your credit card bill. They class this as favouring one creditor over another and isn't allowed usually.

Stepchange are who I went through and they are amazing and do all the checks for you

stef787

I made a small repayment to barclaycard to stay within the limit as they added late payment charges. I hope it won't affect my application

misschatterbox

Just make sure you let Stepchange know and they will let you know if effects you or not. Just remember to declare everything as they do check your credit files to see credits, defaults, payments etc.

debt_doctor

stef787 wrote: »

I made a small repayment to barclaycard to stay within the limit as they added late payment charges. I hope it won't affect my application

Hi, a contractual payment can never be a preference, and it seems you made a payment to stay within the contract terms.


DD

wba31

debt_doctor wrote: »

Hi, a contractual payment can never be a preference, and it seems you made a payment to stay within the contract terms.


DD

But surely if youve been keeping contractuals on one but not on all the others then there is preference going on?

wba31

stef787 wrote: »

I am applying for a DRO through stepchange and I included a Credit card which was used recently (Within the last month).

Has anyone had a DRO refused because of this?

thanks

Creditors have 30 days to object to the granting of a DRO, but they have to have valid reason for objecting, such as recent use of the credit, borrowing with no intention to pay back, or if they have evidence that you are not eligible for the DRO