DRO/Default?

StevenB12

Hey guys.

I'm almost 2 month into my DRO and I was wondering if anyone could shed some light on this.

So my only two debtors were TSB and Lloyds. About a week after my DRO was accepted,TSB wrote to me to say they had been informed and that at the end of the DRO they would write off the remaining debt. My Clearscore now comes up with TSB being in arrears.

However, my main debt with Lloyds, I recieved no word from them and my credit with them is still shown as being active for a loan and credit cards with the credit card increasing due to interest and missed payments etc.

Should this be showing as being in arrears by now?

Thanks 

sourcrates

It doesn't matter how your creditors mark your credit file at this point in time, as anything can happen, its rare, but your DRO might yet fail.

Once your DRO has completed, then that is the time to do a credit file clean up.

Debt Camel covers the process on its website, but basically all accounts should be defaulted with a default date no later than the start of your DRO, and all should be marked as either "settled" or "satisfied".

If your file shows differently to this at the end of your moratorium period, then the usual complaints letters should be sent, but not yet.

StevenB12

Hey guys,

Just looking for some info.

Started my DRO in October 2021, now this month and last month I have received two letters from TSB (default notices).

With both letters stating further action will be taking. I phoned TSB in December informing them of my DRO and was told their system hadn't been updated. The letters stopped for a while but have now just started to begin again.

So I contact them again or ignore?

Thank you 

sourcrates

And what "further action" do you think they can take ?

Your in a debt relief order, its a legal insolvency solution to your debt problem, they have no remedy against you.

I`m sorry to be blunt, but why do you think these arrangements exist ?

You must have known when you signed on the dotted line that you have complete protection from your creditors, let them waste paper sending you letters, they have been informed of your DRO, you have done what is required of you, let them go on there merry way, if they try to take legal action, then you have a full defence to any claim, there is no need to jump on every piece of literature they send you.

Just rest easy in the knowledge you are fully protected.

missnosey122

They will still send an annual letter just ignore them any with threats ring again or write sending a copy of your DRO agreement letter keep your own copy of any correspondence just incase but don't think you'll need to use it. 

As for credit ratings they are irrelevant right now & for at least 3 months after moratorium period ends as it is unlikely you will want to have or be accepted for any finance agreements. Any clearing up of ratings can be done then.