DRO debt sold to collection agency.

[Deleted User]

This has made me quite angry but Newday has sold my credit card debt to Lowell even though this debt was included on my DRO. My question is can they do this?

[Deleted User]

Yes, they can. It makes no difference though, so no need to be even quite angry.

[Deleted User]

Thanks for that, I just find it stressful and annoying. I also had Moorcroft sending me letters about a debt on my DRO until I called them and they said "oops, sorry we shouldnt have sent the letters". I did log into the Lowell online portal and clicked on the debt and it said please call the insolvency team.

fatbelly

Deleted_User said:

Thanks for that, I just find it stressful and annoying. I also had Moorcroft sending me letters about a debt on my DRO until I called them and they said "oops, sorry we shouldnt have sent the letters". I did log into the Lowell online portal and clicked on the debt and it said please call the insolvency team.

Then they know it's in an insolvency process and there's no need to call them.

sourcrates

The sale of insolvency debts is quite common, its done in the hope the insolvency will fail somehow, and the debt becomes recoverable again.

As long as all goes well, you won`t have to worry, and you can ignore such contact.

If they persist in collection activity, send a written complaint.

[Deleted User]

Thank you for that reply. Just as an addition, another one of my debts has been sold from On Stride to Lantern, told them that it was on the DRO and they said they would investigate and get back to me in 8 weeks. In the meantime they keep on pestering me for payment. Should I wait for the 8 weeks or complain to the Financial Ombudsman?

sourcrates

Deleted_User said:

Thank you for that reply. Just as an addition, another one of my debts has been sold from On Stride to Lantern, told them that it was on the DRO and they said they would investigate and get back to me in 8 weeks. In the meantime they keep on pestering me for payment. Should I wait for the 8 weeks or complain to the Financial Ombudsman?

No point doing anything, as they have no remedy against you.

However you could write or email, and tell them again, that the debt is included in your insolvency, make it a complaint, you might get £50 for your trouble.

Threaten them with the FOS, you can`t escalate to the FOS until Lantern has issued a final response anyway.

[Deleted User]

I opened my email this morning and Lantern had this to say about my complaint:

Lantern were not previously made aware of your DRO, but we thank you for confirming this. We have referred this matter to our partners who will be able to verify the completion of your DRO. What happens next? The account is on hold whilst we verify the completion of your DRO. You do not need to take any further action. Conclusion I cannot agree that Lantern have done anything wrong as we purchased the debt in good faith and were not aware of your DRO. I am therefore unable to uphold the complaint.
So while Lantern say they didnt know, On Stride did know, well their administrators. I am not sure what completion of my DRO means, its not finished till June 2022. Oh well, as far as I am concerned this is part of my DRO so they are not getting anything.

MalMonroe

Sorry that you won't get any compensation for their incompetence but when you enter into a DRO it's recorded on the Individual Insolvency Register. Your details will remain on the database for the duration of your DRO and three months after it has finished. This usually means that you'll be on the register for about 15 months.

So, as Sourcrates says, they have no remedy against you. And they can easily check on the register that your DRO is still ongoing. In fact, anybody can check that register but it's usually creditors who do it. A lot.

Hopefully, now you can relax and not worry because there's nothing they can do.   

sourcrates

There is nothing they can do, remember you have legal protection, so don`t worry, that letter is just a standard "we've done nothing wrong guv" reply.

Any more grief from them, ring the IS DRO helpline and ask them to deal with it.

fatbelly

Deleted_User said:

I am not sure what completion of my DRO means, its not finished till June 2022. 

That is what it means - that you got through the 12 months without having it revoked