DRO & Payday loans

DecemberCarol

Can someone clarify for me please. Is it possible to be subject to a DRO (started Dec'15) and still successfully apply for payday/short-term loans? Asking on behalf of family member.

Thanks

wba31

Yes, loans can be applied for, however if borrowing more than £500 the lender must be informed of the existing DRO.

I would be more inclined to ask why payday loans are now required? is the budget not working/unrealistic? if so borrowing more money isnt the answer.

If it's a 1 off, is there not free way of a short term loan (family member for example?)

DecemberCarol

Yes i knew about £500 but was thinking payday lender would perhaps be more careful and check the register.

I would ask the same question. Whatever the budget it would never work for him. Gambling issues in the past. Short term family loan is not the answer and is not going to happen after 20 odd years of loans and bail outs..

All the debt is going to catch up eventually and not sure what the outcome will be.

fatbelly

All his debts would now be frozen under the DRO.

The DRO will show on his credit file and even payday lenders are now following guidance - it would have to be a very dodgy company to lend to him.

mwarby

But I dare say if they did opt to lend to him, the new debt would work in exactly the same way as it would for anyone else.