DRO - What to expect from a Intermediary call?

cam90635

Hi,

I am due to have a call from a DRO intermediary next week through Money Wellness. Getting to this stage has already been challenging as they disputed the value of my car (they were valuing it higher than £4000) I have submitted 2 written valuations from independent dealers that put my car under this price and they seem to think that will be sufficient. 

So I guess my question is what will they ask on the call? What's left to talk about? Will the car come into question again? As they already looked through all my document on the phone today. I feel like my nerves are hanging on by a thread and I'm so so anxious about it getting rejected, especially since my breathing space has ended.

fatbelly

Breathing Space doesn't really do anything so don't worry about that.

A DRO application has to show income, expenditure and debts, so that will be 90% of the conversation.

cam90635

Thanks, what do they ask about the expenditure? I did a budget with the help of Stepchange but I only submitted one bank statement. Some of my bills I transfer the money to my partner and things like my car insurance renewed this month so there's 2 car insurance payments, so I'm worried there's things that look odd like that.
I am such a worrier - sorry for all the questions. 

stu12345_2

I have experienced money wellness dro telephone interview, it did not go well. they will add your income and partners income then split the bills  50 50.  and some things in your name only eg car insurance, road tax, but they will still split it 50 50 with your partner

do not give yourself savings or emergency fund, that's not allowed in a dro, yes in a dump, but not dro.
work out AVE last three wages, gas, elec , water, allow for MOT, repairs, fuel, divide it by 12, thus monthly result 
then the will see what you got left, it must be between zero pounds and £75 a month left over.
if it's under you can say please lower my shopping  bill, I over estimated it,. if it's over£75 say you can up my shopping.please
they will not allow any savings per month, as that's why you can have up to £75 left over 

try keep alcohol and tobacco very very low.£10

do a budget in advance, see if it fits the magic zero to £75.
the advisor doesn't like you to play around with your budget whilst on phone to get it to fit the dro criteria.
they warn you it's an offence to lie or manipulate 

don't go above £60 for leisure for you two, £55 for clothes,£40 for toiletries,£400 for food 

the telephone interviewer was strict, forceful and interruptive imo

cam90635

Thanks, I have done my budget and my surplus for the end of the month is £69, so I'm hoping that will be okay 

stu12345_2

that don't give much leeway, £6, maybe youve  underestimated some costs, you are allowed a reasonable life though 
Xmas birthday gifts are allowed so are takeaways, magazines, postage, dry cleaning

don't cut things too tightly is my opinion 

cam90635

Okay thank you for that. I will have another look at my budget before the call and will hope it goes okay.

Can I ask, you say your call didn't go well. Did you have to then find another solution? Or did you try through a different company? 

stu12345_2

they said I fitted a dro but said they would not approve it as i work part time and they asked do I expect my income or assets to change and improve in 12 months during the dro, I said no. 
but they said they expect it to improve to full-time again, thus the dro would revoke during the 12 months

I said im not full time job seeking and will remain part time employed during the 12 months I was not happy with their future crystal ball guessing 

they said cos I claim a tiny bit of universal credit I would be forced to get a full-time job. i said my earnings were above the DWP applicable earnings threshold,AET, thus I'm in the group where I don't have to full-time job seek at all.

they didn't know this rule.

they said pay £1 a month till I go back to full-time jobs, that was their only solution 

i then went to Christians against poverty to reapply via them

cam90635

Okay thank you very much for that. I will see what happens on the call and I guess I will decide from there 

stu12345_2

don't let them bully you or trick you. try have your budget bang on first time

I think they know folk have their budget pre prepared for the phone interview,but say to you sorry  that expense isn't allowed or are you 100% sure that's your final answer 
they seem to try and trick you into adjusting it , so that they can say to you , you can't bend it to suit sir, this is a legal application 
they said this is not a dmp, it's a dro and highly legal with strict rules

they said I could complain or if my circumstances change within next 3 months, reapply with them

Brie

Are there things that are in both your names but only one of you is getting a DRO?  That means that the creditor can collect it all from the other person.  So if both your names are on the council tax but just you getting the DRO then the council can chase your other half for the entire council tax not just half.  

Have you given them proof of your ID?  Have you supplied 2 - 3 months of bank statements for all of your accounts?  Do you have a basic bank account different from any credit cards/bank accounts that will be going into the DRO?  No assets over £XXX?  All creditors treated equally?  No assets sold off particularly at below value prices?  Have you applied for a new job or benefits so things are likely to change significantly in the next 12 months?

They are not there to trick you no matter what any others might say.  They are there to help you so you get it right so that you don't fail because if that happens you can't reapply for a year (I believe)

If you feel that things are not working for you consider using a different agency - StepChange or CMA might work better for you.