A query regarding my DRO

moosetastic

Hi everyone. Hope someone can help.

I applied for a DRO on 5/01/2016 and it was approved on 6/01/2016. On my DRO I included my old tsb bank account that was nearly £400 overdrawn (it had a £250 agreed overdraft so I was roughly £165 over overdrawn). On the day the CAB chap completed and submitted my DRO my credit report showed I owed them £265 so this was the total he put on my form. TSB are now constantly calling me for the remainder amount, and further charges that have since been added. Do i still have to pay this? Is the £250 overdraft owable or just what it's over? As in do I owe the £165 or the whole £400ish. I'm hoping not but did read somewhere that if it's not included you can't add it. I did point out how much I owed to the CAB when he applied but he said that he couldn't change the total as it had to match my credit report. Any advice I could get will be highly appreciated. Thank you in advance sorry if I've been a bit confusing.

wba31

In my understanding, if you owe £400 and only £250 was listed on your application, the creditor is within their right to pursue the erroneous £150.

I would be looking to speak to a manager at the CAB to explain the situation. Personally, if you were sat opposite me with a statement dated yesterday for £250, but you were adamant the balance is £400, i would put £400 as it's your application, I am only an intermediary.

What will happen when your DRO finishes though is another matter. Will the creditor write off the full debt? or just the included part? ive never had feedback on that, but then would like to think ive encouraged people enough to check and confirm the balances

moosetastic

Thank you for your help wba31 I shall ring the CAB and see what they say. The trouble I have is now though is that TSB have closed my account so when I log into my internet banking it doesn't show up and so I have no idea what my up to date total is, only what they are telling me. I'll try and find out.

fatbelly

We have had figures amended by the DRO Unit as long as the error is put to them fairly quickly.

Our guidance says:

The DRO can be changed to correct an error or omission. Examples include where:-
•the amount of a debt included in the DRO is less than the correct balance outstanding
•incorrect creditor details or reference numbers have been included for a debt and the creditor refuses to acknowledge that a debt owed to them is included in the DRO because of this.

Adding debts to the DRO

Insolvency law prevents the DRO Team or court from adding any debts that were not specified in the original application. This means that your client can ask to change details of debts that were included in the original application but not to add any that were missed, or that have subsequently come to light.

Asking the DRO Team to change the DRO

If your client wants to ask for their DRO to be amended, write to the DRO Team to request this together with any evidence to show that there is an error or omission in the DRO, for example if you're asking the amount of a debt to be changed you'll need to get proof of the balance outstanding from the creditor.

You can use the sample letter to ask the DRO Team to amend a DRO.

I won't post the sample letter but it's in the toolkit and refers to sections 251L(1) & (8) of the Insolvency Act.

moosetastic

oh, thank you, thats brilliant. I shall go to the bank and get a full printout of what I owe and then write to the DRO unit. Thank you very much actually logged into my Clearscore account and it shows the current amount I owe, so will print this off and send with the sample letter

moosetastic

ps do i send the letter or does my advisor at the CAB do it? sorry for being thick

fatbelly

moosetastic wrote: »

ps do i send the letter or does my advisor at the CAB do it? sorry for being thick

It's best your intermediary does it

moosetastic

Just thought I would post an update on this. I called the Official Receiver and this is what I was told.

They can amend my balance owed to TSB on the 6th January, Ive just had to provide bank statements to prove what it was. Any charges added on after this date are not applicable as the debt is technically "frozen" so 1) they shouldnt add it on and 2) they shouldnt be chasing me for payment.

just waiting now for it to be amended. Thank you for all your help. Thought I would let people know what happened for future reference xxx