Scared that my DRO will be revoked *UPDATED Aug 2016*

Piggywinkle

Warning, this is going to be lengthy.

I had to give up work in 2012 (it's a long story) and had a hard time struggling to pay both my debts (1 x 11k loan to Lloyds, 5 x circa 1.5k to other CC accounts) and essential bills. I was advised by a family member to apply for PPI redress as it had clearly been missold to me some years before. I was given just over £700 from Lloyds in Nov 2012 who said that the matter was then closed (I still have the letter). I didn't return to work until June 2015 (part time) and was paying monthly £1 token payments to the creditors over the entire period.

After suffering from debilitating anxiety and depression during this period, we also moved house twice, once to downsize and once because of nightmare neighbours. I have been suicidal on more than one occasion since 2011.

After being in touch with Stepchange for a while, they advised me to go BR which I was interested in but it was impossible for me to raise the fees. I continued with the token payments after being turned down by several charitable trusts when asked if they could help with my BR fees.

Then the rules changed on the DRO limits from 15k up to 20k. Stepchange told me I ticked all the boxes and that I was eligible. After selling all sorts on eBay etc. I finally scraped together the £90 fee and got it through. The day my DRO was granted in Jan 2016 felt life-changing. I felt like I could think about the future again.

Lloyds sold my debt onto Robinson Way around 3 months into my DRO but I sent them copies of my documentation and it was passed back to Lloyds.

Fast forward to yesterday. I received a phone call from Lloyds to say that they had reviewed my original PPI claim back in 2012 and were happy to tell me that I was due £2088 from them. They were calling to say that they needed an up to date address to send the cheque to. I actually thought it was a scam and didn't give them my address, telling them that I would independently call Lloyds back at a later date.

Anyway, it seems it is genuine. I called Stepchange immediately as I saw online that my DRO would be revoked because of this offer. They told me to contact the OR office which I did. However because it was bang on 5pm, anyone who could advise me had left. I've been told by Stepchange and by the front line staff at the OR office that I cannot refuse this payment. I don't even want it, I never asked for a review and now my DRO will be revoked because of it. My husband says it appears to be an attempt at getting my DRO revoked so they can chase me for the debt again, granted it does seem well timed, after being passed back from a DCA too.

I am now back to wanting to end it all again. I can't go through everything again, I'm not mentally strong enough. Stepchange told me I could simply apply for BR but I just want it to end. I want everything to end. I feel like a burden to my husband and my daughter and feel like they'd both be better off if I wasn't here anymore.

I am supposed to call back to OR office this morning but all I do is cry and sound pathetic. I just want to give up.

Lioness_Twinkletoes

To be honest, Stepchange are right. Take the money and go bankrupt. What difference does it make?

I am sorry you are feeling so down; I'd suggest you speak to your GP.

fermi

You are not a burden. The best of people get themselves a bit tied up in knots sometimes. Sometimes on money, sometimes on other things.

This is very sortable, even if the DRO should get revoked.

I know it seems like someone has pulled the safety net you've just acquired out from under you, but it's really just a wobble, and it's still very much there if you need it.

wba31

get the cheque, go bankrupt. Bankruptcy cannot be overturned or revoked like a DRO, once it's done it's done and the debt is gone - sooner than jan 2017 if your DRO was to have completed it's moratorium

debt_doctor

Hi,
Just to echo what others have touched upon.
If (and we don't know) your DRO is revoked, then you will move straight from one insolvency method (DRO) in to another (bankruptcy). Your protections will remain in place.
There are also some advantages in bankruptcy over a DRO:


You can't be put through this again - no mechanism for revoking a bankruptcy by a creditor or by receiving assets.


It's a big 'catch all' of all your debts, so if there is a debt you forgot about and so miss it off the forms - it doesn't matter - all of your debt is covered - so no nasty surprises like you can sometimes get with a DRO.


It seems that your not earning at the moment so no risk to your or the families income.


Just hang in there - it's going to be absolutely fine.
DD

Piggywinkle

I have just called the OR office back. The lady I spoke to was very understanding (I am a crier unfortunately). She said that I need to get the cheque from Lloyds and hang on to it. In the meantime, the OR office will send me out a letter asking me to detail the situation. It then gets passed through two layers of management before the decision is made about my DRO.

Even the lady at the OR office thought it was strange timing after it being passed back from Robinson Way.

Thank you for your replies, I will make sure I update this thread as and when something happens.

fatbelly

My first thought is that you can always rely on Lloyds to be ar*****es.

The timing and the amount does seem tailored to getting the DRO revoked. However if you look at the wording of the guidance it's not a done deal:

Where the value of the property, including lump sum payments, is between £1,000 and £1850, each case will be assessed on its own merits taking into consideration numerous factors, including but not limited to liabilities, health, personal circumstances, age, etc. and a decision will be made on an individual basis as to whether it would be appropriate to revoke or not.

Where the value of the property, including lump sum payments, is in excess of £1850, it is more likely that a DRO may be revoked, although any mitigating factors would be included in our determination.

all I can say is to make sure the DRO Unit know the full circumstances, the positive effect on your anxiety and depression that the DRO had, and the effect that this is now having (evidence from GP or similar).

You never know what might happen - the DRO Unit are pretty good really.

Piggywinkle

Thanks so much fatbelly - I am going to start writing my letter down today so that everything is fresh in my head. I had a good cry this morning and now I feel a bit better, if not hugely tired!

But yes - it is extremely suspect that this PPI refund for this amount seems to be offered to me now, of all the times it could have happened. Unfortunately, I imagine it would be difficult to prove that there was any malice intended on the part of Lloyds, who would just say they haven't broken any rules. The call with Lloyds was very surprising as the guy I spoke to didn't understand why I was far from ecstatic, even after explaining it to him. Ah, the joys of speaking to someone with a script in front of them!

debt_doctor

fatbelly wrote: »

My first thought is that you can always rely on Lloyds to be ar*****es.

Ha! yes mine too!
The arguments I have had with their complaints team - oh and the local bank manager I walked round to see personally.........
DD

Lori59

Glad to hear you are feeling a bit brighter, I wish you all the best.
I wish I had never heard of a DRO and our CAB guy was pants.
I have felt just like you far too often

sourcrates

I think a lot of old PPI claim pay outs are been re-assessed, due to customers been short changed the first time around.


My brother had 5 PPI complaints in 2012, Halifax paid out almost 5 grand back then, last month he had a letter out of the blue, saying they had mis-calculated the original compensation, and enclosed a cheque for a further £5400 !!!


So, the timing, although a little iffy, may not be deliberate at all.


I hope your DRO can complete, but if it doesn't, simply take the money as suggested, and go Bankrupt, then its done, once and for all, and cannot be revoked.