Help with DRO and creditor letters

Sparkl3

Hi everyone,

I recently entered a DRO. I have 3 accounts with Lloyds bank, one is a current account with overdraft, one is a loan and one is a credit card.

i received 3 letters today regarding the DRO, for each account. For the overdraft and loan they are saying it needs paying back. The credit card letter doesn’t say this. 

My understanding of a DRO was that I wouldn’t have to pay it back unless my circumstances changed for the better? As it happens it’s likely my circumstances will change for the worse financially, so just wanted some clarification really.

Thanks for your time

Brie

Were they included on your DRO?  If not you may need to restart it to ensure they are.  If they were you need to send them a copy of the DRO showing they are included and that they should stop bothering you .

Sparkl3

Brie said:

Were they included on your DRO?  If not you may need to restart it to ensure they are.  If they were you need to send them a copy of the DRO showing they are included and that they should stop bothering 

they were included yes. It’s strange because all three letters are telling me they are closing my account in two months’ time due to the insolvency service informing them of my DRO. However the only one not asking for repayment is the credit card. Thank you for the response 😊

sourcrates

A Debt Relief order is a legally binding agreement, are you certain it was a Debt Relief Order and not a DMP ?

Assuming its a DRO, you must be sure to include all your creditors as changes cannot be made once its granted, if all creditors agree to the DRO, then it makes no difference what they write in a letter to you, they are bound by the arrangement.

Your moratorium period lasts for 12 months, after which, your debts will be written off, and you will be debt free, you make no payments to your debts whatsoever in a DRO.

Any chance you can post a copy of the letter on this thread, with personal details redacted of course, then I can tell you if what they say is pertinent or not, I suspect not.

Sparkl3

Thank you for your response Sourcrates, I hope this image is ok to post. It’s definitely a DRO I’ve got the letter from the insolvency service and all Lloyds accounts are listed on it. Maybe it’s a generic letter I just find it odd that the credit card doesn’t include the ‘there’s an amount on your account which needs to be repaid’ section. 

Also, the closing it in two months time - any idea why two months and not immediately?

sourcrates

Its just a technicality/typo error, or whoever wrote it doesn't understand how a DRO works.

With a DRO, your debts are not written off until you successfully complete the arrangement.

So your debts are technically still due, until that point.

You are legally protected from enforcement action by your creditors in a DRO, so you have nothing to fear.

Keep in mind that its common practice for lenders to sell on DRO debts, just in case they don`t complete successfully, so you might be contacted by some 3rd party companies or you may not, either way, it makes no difference what they write in a letter to you, both you and they are bound by the terms of your DRO.

Sparkl3

Thank you so much for your response. I’ll keep a look out for any 3rd party involvement - I don’t feel scared to open my post anymore.