Debt sold to debt collector whilst in a DRO
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gellerbing
Posts: 350 Forumite
I entered into a debt relief order a few months ago and apart from a little niggle with post office and very it's all been fine and had no contact. However, this morning i received a letter from a debt collection agency about my very account! It states on there that very said they have no reason to believe that i can't pay the outstanding debt!
What happens in this situation? Very should be aware of the debt relief order as i told them about it as did stepchange. Do i tell stepchange about this letter or do i tell them about my DRO?
What happens in this situation? Very should be aware of the debt relief order as i told them about it as did stepchange. Do i tell stepchange about this letter or do i tell them about my DRO?
Wins: Cushelle Koala, Mama tea bundle, coconut ice cream recipe book
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Tell Stepchange, tell the DCA to take a hikeNow we all know how it felt to play in the band on the Titanic...0
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Sometimes debts are sold on during a DRO, some of mine were.
Relax, you have legal protection from your creditors, so there is nothing they can do, and you are better off dealing with it yourself.
Send a letter of complaint to Very and to the DCA, enclosing a copy of your debt relief order, I also included a copy of my details from the insolvency register as well, mark your letter “COMPLAINT”.
As creditors are not allowed to ask for payment whilst a debtor is in a DRO, they have technically breeched the regulations, so ask for compensation, I did, I got £150.
Good luck.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
They are trying to scare you! They have to honour the original agreement.
As I understand it creditors are free to sell debts to third parties whenever they choose. However they will sell for a fraction of what you actually owed them.
The new companies (the less reputable ones at least) then use tricksie language / letters to try and scare you into paying more.
Be carefull though because I think they can do a new affordability check with you to try and prove you can pay more or your circumstances have changed. Not sure about that though.0 -
As creditors are not allowed to ask for payment whilst a debtor is in a DRO, they have technically breeched the regulations, so ask for compensation, I did, I got £150.
this i like,,,,,,,,,,,,,,Now we all know how it felt to play in the band on the Titanic...0 -
They are trying to scare you! They have to honour the original agreement.
As I understand it creditors are free to sell debts to third parties whenever they choose. However they will sell for a fraction of what you actually owed them.
The new companies (the less reputable ones at least) then use tricksie language / letters to try and scare you into paying more.
Be carefull though because I think they can do a new affordability check with you to try and prove you can pay more or your circumstances have changed. Not sure about that though.
They cannot do anything at all as the OP is in a Debt Relief Order, which is a form of insolvency, to which no creditor has a remedy.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Ok so i tried sending a letter to both very and the collection agency and the complaint went ignored as the collection agency sent me another letter today asking me to set up a direct debit to repay the money. Stepchange it is then!Wins: Cushelle Koala, Mama tea bundle, coconut ice cream recipe book0
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Gellerbing wrote: »Ok so i tried sending a letter to both very and the collection agency and the complaint went ignored as the collection agency sent me another letter today asking me to set up a direct debit to repay the money. Stepchange it is then!
personally id not have replied in the first instance
the bin is over there >>>>>>>>>>>>>>Now we all know how it felt to play in the band on the Titanic...0 -
Gellerbing wrote: »Ok so i tried sending a letter to both very and the collection agency and the complaint went ignored as the collection agency sent me another letter today asking me to set up a direct debit to repay the money. Stepchange it is then!
Stepchange will just refer you to the insolvency service.
As I said before, it makes no difference what the DCA says or does, YOU HAVE LEGAL PROTECTION FROM YOUR CREDITORS.
Ring the financial ombudsman helpline, (number on there website) tell them what’s going on, they will write to Very, and the DCA telling them to respond to your complaint, they cannot just ignore it.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Gellerbing wrote: »Ok so i tried sending a letter to both very and the collection agency and the complaint went ignored as the collection agency sent me another letter today asking me to set up a direct debit to repay the money. Stepchange it is then!
Well tell us what stepchange say as their record in after-dro support from their intermediaries is not good.
What did your letter say?
CAB have a standard letter, which you should send with a copy of your debtors notice (headed DEBTNOT and sent to you by the DRO unit in Plymouth when you first got your dro)Dear Sir/Madam,
Account number: [insert account number]
I am writing in response to your letter dated [insert date] asking for my proposals for repayment of the sum of £[insert amount].
I have a Debt Relief Order [DRO number] dated [insert date of DRO]. You are scheduled as a creditor in the DRO for the sum of £[insert amount]. Any further interest and charges are also included in the DRO.
You should have received a letter from the DRO Unit with the following information:-- confirmation that a DRO has been made
- you have no remedy in respect of this debt during the DRO moratorium. The moratorium begins from the date the DRO was made, (section 251G of the Insolvency Act 1986)
- at the end of the moratorium I will be discharged from liability to you (section 251I of the Insolvency Act 1986).
[Additional paragraphs for use when a creditor is clearly aware of the debt relief order :
If you feel that you should not have been scheduled to the DRO, you could have objected to the DRO within 28 days in accordance with section 251K of the Insolvency Act 1986 and rule 5A.14 of the Insolvency Amendment Rules SI 2010/642.
There are very clear instructions about objecting in the notification to you from the DRO Unit. By attempting to recover the sum scheduled to the DRO you are trying to exercise a remedy which is prohibited by law.
If you continue to attempt to recover this debt, either during or after the moratorium, please note that I will defend any court action either as an abuse of process or on the ground that there is no longer a debt, depending on what stage you make the claim.]
Please amend your records accordingly and confirm that you will be taking no further action in respect of this account.
Yours faithfully
[name]0 -
maxmycardagain wrote: »personally id not have replied in the first instance
the bin is over there >>>>>>>>>>>>>>
I felt i had to reply as i can't risk them sending anyone round to the house. I live with the inlaws and they know nothing about this, i want to keep it that way if i can.Wins: Cushelle Koala, Mama tea bundle, coconut ice cream recipe book0
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