DRO and balances not up to date

FataMorgana

Hi, I was just wondering if I could get some advice again with my DRO. I do have a debt that was missed off, that's not the issue here. Some of the balances weren't up to date and I had a statement today from one-Virgin Money. The DRO covers £293, the credit card statement was for £547. So I'm liable for whatever isn't covered by the DRO. I paid the minimum payment as I'm worried they'll keep adding interest and late fees if I don't? What do I do here? My DRO was granted 16 December so some of my accounts are still showing as normal, usable accounts. Unlike a couple where the debt has gone or there is a marker on the account. I don't want the balances that I am liable for to keep increasing and I don't know what to do. Thank you in advance-any advice would be appreciated

Brie

As I understand it the DRO is somewhat carved in stone.  So if a debt is missed it can't be included.  If you include a debt at a lower amount than is actually owed it can't be increased.

The question then is why was something missed and why weren't the amounts correct.  Presumably someone checked the credit history just prior to doing the DRO.  So how can an amount be so different?  Did they suddenly add a  lot or did you use the card more somehow?  

Someone said on a similar query that you could write to the companies and state that a DRO is in place and simply state that they need to write off the amounts.  Not sure if that will work or not but it certainly seems worth a try.

Either way talk to the agency that submitted the DRO on your behalf.

fatbelly

FataMorgana said:

Hi, I was just wondering if I could get some advice again with my DRO. I do have a debt that was missed off, that's not the issue here. Some of the balances weren't up to date and I had a statement today from one-Virgin Money. The DRO covers £293, the credit card statement was for £547. So I'm liable for whatever isn't covered by the DRO. I paid the minimum payment as I'm worried they'll keep adding interest and late fees if I don't? What do I do here? My DRO was granted 16 December so some of my accounts are still showing as normal, usable accounts. Unlike a couple where the debt has gone or there is a marker on the account. I don't want the balances that I am liable for to keep increasing and I don't know what to do. Thank you in advance-any advice would be appreciated

It won't be a problem. As long as the debt is on the DRO, the balance can be amended if needed. It is the balance on the Day of Determination, ie the day it was approved, that counts. You can ask the DRO Team to change this but I'm not sure it's worth bothering. There is a standard letter for it but can't access this atm.

The writeoff only occurs at the 12-month point so some creditors will keep things ticking over in case your DRO fails.

Don't worry about how your credit file looks until the whole thing is over..

FataMorgana

Brie said:

As I understand it the DRO is somewhat carved in stone.  So if a debt is missed it can't be included.  If you include a debt at a lower amount than is actually owed it can't be increased.

The question then is why was something missed and why weren't the amounts correct.  Presumably someone checked the credit history just prior to doing the DRO.  So how can an amount be so different?  Did they suddenly add a  lot or did you use the card more somehow?  

Someone said on a similar query that you could write to the companies and state that a DRO is in place and simply state that they need to write off the amounts.  Not sure if that will work or not but it certainly seems worth a try.

Either way talk to the agency that submitted the DRO on your behalf.

Thank you. There were automatic payments that were coming off the card  and, at this point, I was paying debt with debt basically. I was trying to keep up the the payments. When we did my DRO application, we went with the credit agency(reference?) balances, I was very stressed and didn't think properly so it's my own fault. This is the largest balance difference, there's one I'm not so bothered about

FataMorgana

fatbelly said:

FataMorgana said:

Hi, I was just wondering if I could get some advice again with my DRO. I do have a debt that was missed off, that's not the issue here. Some of the balances weren't up to date and I had a statement today from one-Virgin Money. The DRO covers £293, the credit card statement was for £547. So I'm liable for whatever isn't covered by the DRO. I paid the minimum payment as I'm worried they'll keep adding interest and late fees if I don't? What do I do here? My DRO was granted 16 December so some of my accounts are still showing as normal, usable accounts. Unlike a couple where the debt has gone or there is a marker on the account. I don't want the balances that I am liable for to keep increasing and I don't know what to do. Thank you in advance-any advice would be appreciated

It won't be a problem. As long as the debt is on the DRO, the balance can be amended if needed. It is the balance on the Day of Determination, ie the day it was approved, that counts. You can ask the DRO Team to change this but I'm not sure it's worth bothering. There is a standard letter for it but can't access this atm.

The writeoff only occurs at the 12-month point so some creditors will keep things ticking over in case your DRO fails.

Don't worry about how your credit file looks until the whole thing is over..

Thank you. The full debt counts then, nothing has increased since the DRO was granted so I'll wait it out. I just hope making the minimum payment that I did won't affect me-I didn't know what to do. However, I know you're not supposed to be making any payments

Grumpelstiltskin

OK Christmas is almost here so please forget all your DRO worries.

Once it has been granted that is it final and  with Christmas and New Year holidays it could be many weeks before your creditors update things.

FataMorgana

Grumpelstiltskin said:

OK Christmas is almost here so please forget all your DRO worries.

Once it has been granted that is it final and  with Christmas and New Year holidays it could be many weeks before your creditors update things.

Thank you-wishing you a very happy Christmas

fatbelly

I don't have the standard letter to hand but it would say something like:

 I was granted DRO number X on (date)

 Please make the following amendment under IA 1986 s251 L (8) & (9)

 The balance of the debt to Y was £xxx.xx on the Determination Date

You will see from those sections that the Official Receiver can amend a balance but can't add a new debt

FataMorgana

fatbelly said:

I don't have the standard letter to hand but it would say something like:

 I was granted DRO number X on (date)

 Please make the following amendment under IA 1986 s251 L (8) & (9)

 The balance of the debt to Y was £xxx.xx on the Determination Date

You will see from those sections that the Official Receiver can amend a balance but can't add a new debt

Thanks, I've found the letter on a previous post. Getting myself in a tizz now, do I amend it? Do I leave it? Is it the DRO Unit I would write to? 

Grumpelstiltskin

Don't  bother even thinking about writing to anyone until after the new year, the letters will just end up in a pile somewhere.

Like I said just forget about it for now.

FataMorgana

Grumpelstiltskin said:

Don't  bother even thinking about writing to anyone until after the new year, the letters will just end up in a pile somewhere.

Like I said just forget about it for now.

Yes, I will put it on the back burner for now then. I hope everyone manages to have a very happy Christmas and New Year!