Help DRO

loopyloo2022

Evening all
i asked a few questions the other day but I have one more if that’s ok.
I am not in my overdraft with my bank ,I have showed proof to show this but Payplan are saying I need to remove my overdraft and send them proof ..is this right ?
it is only £300 and I know the terms say £500 credit is ok?I would like to keep this for emergencies if possible.
it’s now been 6 weeks and they have sent me numerous pre submission forms but they always find one more thing to ask me about ..I am feeling 😩😩like this is never going to happen now 😩
if by any miracle it is submitted soon do you know whether the immediatery needs to do another credit check or anything or should it go straight through asap when submitted?
thanks again in advance !

Sonic101

Hi there 

I think you may be a little confused.

The rules when in a DRO are that you may not apply for more than £500 credit without letting the lender know you are in a DRO. This does not mean you are ‘allowed’ an overdraft, it simply means that is the maximum credit you can apply for (without letting the lender know you’re insolvent).

The reality is that while you’re in a DRO no reputable lender is likely to touch you (and those that might are probably dodgy). In any case, the idea is to make a fresh start and if you’re considering an overdraft (even if you were able to get one) you’d be getting back into debt again - which completely defeats the object.

You’re allowed up to £2000 in assets/savings, so perhaps another solution would be to save an emergency fund of a couple of hundred quid before going ahead with the DRO? 

sourcrates

You can remove your overdraft in seconds from your banking app, or online bank account.

Then a screenshot of your account, minus overdraft is all that will be required.

You can`t have credit when you are insolvent, emergency funds should come from your income/salary.

loopyloo2022

I have removed my overdraft.
it is not possible for me to save any money each month as I am
already in minus .

I’m a bit confused by the replies here as it does state you are allowed up to £500 credit whilst in a DRO without telling them about it .but I’ve removed it now.
So if I was to say be able to get a credit card for £300 that would be allowed in part of the conditions?(I do not want credit ever again but I am just trying to understand this all for if I have a emergency over the next year.
my DRO was submitted yesterday so 🤞🤞
the £650 cost of living payment because I am on universal credit do I need to worry about receiving that?and the £400 energy payment?do I need to let them know?
(This is going on my electric bill as I am -£300 already!)

Sonic101

I have responded on the other thread.