DRO Questions

mwarby

I’d be surprised if they took no action if your DRO was cancelled. I think by written off they mean they expect to receive nothing

I wouldn’t read too much into the loan status online. Re Monzo I think they are just keen to be friendly and to use understandable language. They most likely won’t offer you another overdraft for 6 years (if ever) but hope to keep you as a customer (see if they can make some money off you long term)

fatbelly

TRX808 said:

Hello everyone,
Quick question: Monzo just emailed me regarding my overdraft which was included in DRO and Email says:
"I'm reaching out because we've been informed by the insolvency service that you have been granted a debt relief order, So we are writing off your debt. We will need to close your account for technical reasons, but you may open new one if you wish" 

Also another debt was from company called Lendable and when I checked loan status it says "Written off" 

I'm just wondering, are they being extra nice or is this normal? that 2 weeks after DRO granted they are already saying they are writing off the debt? not that I am complaining but i'm just wondering if that is it from this companies or they can change their mind anytime. 

It shows how poorly companies still understand DROs after more than ten years of their existence.

The debts should be frozen and then written off when you complete the 12 months.

I had one client who put a large consolidation loan into her DRO. It was revoked a few months later when out of the blue she got a ppi payment from an older loan. We approached the consolidation lender to try to negotiate a full and final settlement deal. They weren't interested - they said it was written off.

TRX808

fatbelly said:

TRX808 said:

Hello everyone,
Quick question: Monzo just emailed me regarding my overdraft which was included in DRO and Email says:
"I'm reaching out because we've been informed by the insolvency service that you have been granted a debt relief order, So we are writing off your debt. We will need to close your account for technical reasons, but you may open new one if you wish" 

Also another debt was from company called Lendable and when I checked loan status it says "Written off" 

I'm just wondering, are they being extra nice or is this normal? that 2 weeks after DRO granted they are already saying they are writing off the debt? not that I am complaining but i'm just wondering if that is it from this companies or they can change their mind anytime. 

It shows how poorly companies still understand DROs after more than ten years of their existence.

The debts should be frozen and then written off when you complete the 12 months.

I had one client who put a large consolidation loan into her DRO. It was revoked a few months later when out of the blue she got a ppi payment from an older loan. We approached the consolidation lender to try to negotiate a full and final settlement deal. They weren't interested - they said it was written off.

Fair enough, That was my initial thought but thought I'd clarify
A LOT of creditors don't seem to know how to react, you can tell by their voice tone that they have no clue when I tell them I was granted Debt Relief Order.

1977dave

I've found that too when dealing with creditors, they have no idea of what they are, how they work, still telling me they're going to demand payment from me, I've found this with offshore call centres who may not be aware of British law or the financial system, in the end, I've just either found a contact in the UK or wrote to the main business address advising of a DRO

reggierose69

Hi again, another question 
I bank with Barclays, my UC money gets paid into this account I am about to miss my payment due on my Barclay credit card, can they just withdraw the money from my bank account as they are the same company? 

I have opened a new account with Santander as recommended by someone as a back up account in case my bank account gets frozen, should I transfer my UC payment to the new account. Just worried if Barclay card take my money as this is for my rent and general living experiences

fatbelly

reggierose69 said:

Hi again, another question 
I bank with Barclays, my UC money gets paid into this account I am about to miss my payment due on my Barclay credit card, can they just withdraw the money from my bank account as they are the same company? 

I have opened a new account with Santander as recommended by someone as a back up account in case my bank account gets frozen, should I transfer my UC payment to the new account. Just worried if Barclay card take my money as this is for my rent and general living experiences

Yes they have the right of set-off. Barclays don't seem to use it on Barclaycard debts and they would be required to give you notice if they did use it. Nevertheless it exists and it's safer to bank where you do not have debts, as you have already been advised.

reggierose69

Thank you for that because that’s the last thing I need  to have my only income stuck in a bank account that’s frozen.
what do I go when contacting stepchange is it a case of telling them of the new account and the reason for me opening it a sole purpose of receiving my UC 

1977dave

That's the first thing I did, I've got an account with Barclays, no debt and a Barclaycard which I owe £300, I opened a Nationwide account, transferred everything across and closed the Barclays account

mwarby

When I was setting up my IVA (7 years ago now), getting a bank account unrelated to creditors was emphasised as being an important and somewhat urgent task. Yes there is always the risk of the new account being frozen, but I’d take that over the account being emptied or overdraft being turned off (which would basically have frozen my account) any day

reggierose69

I’m in a dilemma now, I’ve been waiting to contact stepchange because I wanted to transfer my power of attorney to my sister for my dad, this is still going to take another 2 weeks to complete.
with everything going on now with Coronavirus is it going to have a knock on effect with stepchange and DRO am I better to ride out the 2 weeks for the POA to be sorted or am I better to act now before things get any worse in the financial sector 
Am at a loss what to do for the best I don’t want to get caught in a back log but afraid of POA complications