Debt Relief Order advice please

sourcrates · 3 October 2017 at 10:22AM

I’d crack on with the DRO then soon as you can.

As long as you are below the threshold when it’s signed off you will be ok.

Also there’s nothing to stop you paying something to each account to reduce the balance if needed, as long as you pay them all the same.

Splodge1000 · 3 October 2017 at 4:06PM

sourcrates wrote: »

I’d crack on with the DRO then soon as you can.

As long as you are below the threshold when it’s signed off you will be ok.

Also there’s nothing to stop you paying something to each account to reduce the balance if needed, as long as you pay them all the same.

Thanks as always, sourcrates.

Paperwork has been submitted to the CAB; I expect they will may require further details and will provide these on request.

fatbelly · 3 October 2017 at 6:47PM

Splodge1000 wrote: »

I am not so sure that it will, sourcrates, as I have learned something this morning which is disturbing.

One of my creditors had placed a 30 day hold on my account. This has now been extended by a further 30 days. The creditor explained to me previously that charges and interest would be frozen during this period. They now say that this is not the case, charges and interest are being applied.

The danger is that this may take me over the £20,000 threshold and make me ineligible for a DRO. If the other creditors who also reported freezing my accounts follow suit then I will exceed the £20,000 limit.

Edited to add: my creditors are not aware that at present I am seeking a DRO.

It's best not to give them advance notice of a DRO, so that's OK.

You could complain and ask them to remove interest/ charges.

When it gets close to the 20k limit it becomes difficult as it is the balance owing on the 'day of determination' that counts and when that day is is not defined. We used to be able to rely on it being the day after we pressed the 'submit' button but under DRO2 it is more likely 2 days after.

If you do go over the limit you are allowed to bring it back (before the 'day of determination') by making pro-rata payments.

Splodge1000 · 3 October 2017 at 11:22PM

fatbelly wrote: »

You could complain and ask them to remove interest/ charges.

Thanks, fatbelly. I did that earlier today, as soon as I learned that charges were being applied.

When it gets close to the 20k limit it becomes difficult as it is the balance owing on the 'day of determination' that counts and when that day is is not defined. We used to be able to rely on it being the day after we pressed the 'submit' button but under DRO2 it is more likely 2 days after.

If you do go over the limit you are allowed to bring it back (before the 'day of determination') by making pro-rata payments.

Thanks again, fatbelly. This is what I feared and I am perilously close to the threshold if the charges are not lifted. There is less than £125 spare but if the charges are not applied that becomes over £400 across four creditors. Your last sentence offers me some hope.

Splodge1000 · 11 October 2017 at 7:22PM

Update to the present situation. There is a further complication.

I have not heard from the CAB having submitted documents to them over a week ago. That may be just a case of them being very busy and with a high caseload, of course, as they are staffed largely by volunteers.

The complication is that I complained to one of my creditors that charges had been applied after they had agreed to freeze by account in September. They came back to me with an apology and offered me a £25 compensation payment and a promise to freeze my account at the present balance (i.e. with charges for September applied) for 60 days with no further interest or payment charges applicable during this period. I told them I didn't want the compensation payment and would waive that but I would accept the 60 day freezing if they returned the balance to the level it was in September as they had originally promised.

This matter has now been escalated to a higher authority and can take up to 56 days to be resolved.

In the meantime, the creditor has applied charges for non-payment and interest in October because I did not accept the terms of their previous offer. These charges increase my balance and take me over the £20,000 limit for a DRO. My other creditors have kept to their word and frozen my balance.

I have put in a further complaint to the creditor demanding that these charges for October be removed. This would take me below the £20,000 limit by about £30. I need this to happen otherwise my application for a DRO will be rejected.

fatbelly · 11 October 2017 at 7:52PM

I can see that this is becoming stressful, but you are doing the right things.

Do you know who you are dealing with at the CAB? Do you have a named intermediary? I actually give my clients a direct number to my desk, but I guess I'm unusual. I'm just wondering whether your local office is dealing with this themselves or passing it to the MAS Unit in Durham.

If they are dealing with it themselves it is more likely to be by paid staff who are in more than one day per week, though that is not guaranteed.

Splodge1000 · 11 October 2017 at 8:29PM

fatbelly wrote: »

Do you know who you are dealing with at the CAB? Do you have a named intermediary? I actually give my clients a direct number to my desk, but I guess I'm unusual. I'm just wondering whether your local office is dealing with this themselves or passing it to the MAS Unit in Durham.

If they are dealing with it themselves it is more likely to be by paid staff who are in more than one day per week, though that is not guaranteed.

Thanks for taking the time and trouble reply and advise, fatbelly.

I do not know who I am dealing with at the CAB. When I first attended I asked to speak to the superviser and eventually I spoke with her. She advised that they had a couple of people in the branch who are DRO Intermediaries and got me to sign a form authorising them to contact anyone they might need to with regard to my application.

All I have is a client reference number which was given to me as part of a written receipt when I dropped in to them a covering letter, personal details, income statement (essentially just a signature that I have no income, benefits or pension and do not own property), list of debts and a credit report. The receipt added that the DRO Intermediary has to attest that they have seen all the evidence and that they would get back to me with a full list. I expected that more information and at least one meeting would re required, but to date there has been no movement.

Of course, I now need to get the aforementioned balance adjusted before any application can go to the Insolvency Service.

sourcrates · 11 October 2017 at 8:49PM

Remember you can always pay a few quid off each account to bring the level down to below the 20k limit.

You appear to be pretty close to it.

Splodge1000 · 12 October 2017 at 11:21AM

I have sent you a PM, fatbelly, which I am sure you will find interesting. It is nothing to do with my DRO application which is why I have sent it privately.

Splodge1000 · 12 October 2017 at 2:42PM

sourcrates wrote: »

Remember you can always pay a few quid off each account to bring the level down to below the 20k limit.

You appear to be pretty close to it.

Thanks, sourcrates, but I am now at a loss of what to do.

The creditor with whom I am having difficulties advises me that the 30 - 60 day grace period they give me means that they will not take any collection activity against me during this time. It does not mean they will not apply interest or late payment fees. They will not agree at this point to freezing charges and so my debt to them continues to grow.

This has now taken me over the total of £20,000. A payment to this creditor of £25 will bring the total amount down to below £20,000 but I am not in a position to make similar payments to my other three creditors.

I am unsure how best to proceed.

Debt Relief Order advice please

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