Debt Relief Orders (DRO) - Information & help thread

wba31 · 29 March 2011 at 10:49PM

scarlet55 wrote: »

well thats what i thought, and apparently thats what used to happen but i think they have been challenged in court over it and although they appealed a number of times they still lost in the end, and if i hadn't included it, it would have been seen as showing favour to one creditor.

Up until Feb this year the DWP had appealed the fact that social fund loans, benefit overpayments etc could be included in the DRO and no further payments made. While the appeal was waiting to be heard they were able to continue to take payments, but only for the 12 months of the DRO, as at the end the debt is written off.

However they lost the appeal so they cannot continue to take the payments once the DRO has been approved.

They have tried to appeal again but this has been thrown out

Crisp_£_note · 30 March 2011 at 10:25AM

wba31 wrote: »

You are right in that you no longer have to pay the arrears, only your usage. Eon will be written to, so depending how long it takes them to get the pack from the IS and process it, they may not know about your DRO for a week or two. I would ring them, give them your DRO number, and if they ask you to send a photocopy of your approval letter

Thanks for the reply. I have received an email from eon about my current bill so logged on to Eon and it shows me they have received notification from the Insolvency people and it tells me MY FINAL BILL with an outstanding amount equal to what my bill was last month!

Now I dont understand if Eon are now closing my account and telling me to pay up and find a new supplier or if they intend to create a new account for me and start again afresh and just hold this account with the money owing throught the DRO period ?

I dont know wheather to call Eon, speak to my DRO advisor or just wait until next week and see if it sorts itself and I get a letter in the post or notification of a new account.

Thanks again

Former_E.ON_Company_Representative:_Malc · 30 March 2011 at 10:43AM

Crisp_£_note wrote: »

I have just been granted a DRO one I included arrears to my Gas & Electric supplier, which I was paying off in installments arranged with Eon.

Can anyone tell me please what happens now do I just continue to pay for my usage and will they adjust my bill acordingly (we pay by monthly instalments of cash or online payment) we are not on a meter so no re-calibration is required as such.

Should I contact them or wait for Eon to contact me?

Thanks

Hi Crisp £ note

I've just spoken to our Insolvency team about what happens when a DRO has been granted. Thought I would let you know what they said.

Once the order has been granted, the Official Receivers Office email us with details of the debt listed for E.ON.

Your existing account is then closed down to the date of the DRO and a new one opened for future usage. A final bill is issued up to this date.

All debt up to the figure listed on the DRO for E.ON is written off. If the debt on the final bill exceeds that listed on the DRO, the excess is carried forward to the new account.

To increase the accuracy of the final bill, I would contact us with meter readings on the date of the DRO if you have them.

Don't worry if you don't have these. Let us have the latest readings as this will increase the accuracy of the estimate we'll use to close the original account.

I would talk directly with our Insolvency team as they have the knowledge and expertise to advise you.

Hope this helps Crisp £ note. Give me a shout if you need any more info as will be happy to help.

Malc

Sandella · 30 March 2011 at 4:19PM

although I'm not ready to do a DRO as yet, I would just like to thank all the helpers on this thread which I am continuing to read, you sure are helping alot of people

:T:T

immoral_angeluk · 30 March 2011 at 4:57PM

Crisp_£_note wrote: »

Thanks for the reply. I have received an email from eon about my current bill so logged on to Eon and it shows me they have received notification from the Insolvency people and it tells me MY FINAL BILL with an outstanding amount equal to what my bill was last month!

Now I dont understand if Eon are now closing my account and telling me to pay up and find a new supplier or if they intend to create a new account for me and start again afresh and just hold this account with the money owing throught the DRO period ?

I dont know wheather to call Eon, speak to my DRO advisor or just wait until next week and see if it sorts itself and I get a letter in the post or notification of a new account.

Thanks again

I would contact the DRO unit, as the debt should be written off if included up to the date of the DRO. There are often fluctuations in balance due to interest/additional charges etc, so I'm not sure if what EON rep is saying is correct. The debt up to the date of the DRO should be included and then as they say, a new account at nil balance should be opened.

teresa555 · 30 March 2011 at 7:22PM

I took out a dro may 2009 which ended may 2010 everything was fine, didn't hear from any of my debtors so i assumed my debts was wiped clean, now i am getting letters from santander, they said they are aware i had a dro but have had no letter to wipe the debt off, i explained it should be done automatically but they would not listen to me got nowhere on the phone, socal fund have started taking payments but didn't till last week, i received a letter saying they have changed there decision and will now start taking payments, also went to barclays cashpoint and they had took my money as part payment off my previous debt, all this is happening 10mths after the dro has ended has anyone else experienced similar problems i feel like i am back to square one,

Orville · 30 March 2011 at 7:41PM

teresa555 wrote: »

I took out a dro may 2009 which ended may 2010 everything was fine, didn't hear from any of my debtors so i assumed my debts was wiped clean, now i am getting letters from santander, they said they are aware i had a dro but have had no letter to wipe the debt off, i explained it should be done automatically but they would not listen to me got nowhere on the phone, socal fund have started taking payments but didn't till last week, i received a letter saying they have changed there decision and will now start taking payments, also went to barclays cashpoint and they had took my money as part payment off my previous debt, all this is happening 10mths after the dro has ended has anyone else experienced similar problems i feel like i am back to square one,

Get intouch with the insolvency service ASAP would be my advice.

If santander were aware of your DRO they must know that after a year the debt is written off. Social fund cannot take payments, look at a post by wba 31 a few posts up. They tried going to court to enforce this but it was thrown out. What barclays have done is tantamount to theft also if they are taking money from you that was under a dro. How can they do that anyway, did you not get a new bank account with a different bank..?

scarlet55 · 30 March 2011 at 7:41PM

i would definately get in touch with the or or the cab, im pretty sure that barclays are breaking the law by taking your money...they have no right taking money for a debt that was included in the dro...please dont just sit and do nothing about it...this needs to be sorted out ..and fast,

teresa555 · 30 March 2011 at 8:14PM

Orville wrote: »

Get intouch with the insolvency service ASAP would be my advice.

If santander were aware of your DRO they must know that after a year the debt is written off. Social fund cannot take payments, look at a post by wba 31 a few posts up. They tried going to court to enforce this but it was thrown out. What barclays have done is tantamount to theft also if they are taking money from you that was under a dro. How can they do that anyway, did you not get a new bank account with a different bank..?

hi, thanks for your advice, i don't understand how social fund have changed their decision, i have had no loans since the dro, as for barclays they told me to use the phone on the wall, beside the transaction it said bp which they didnt understand, i was on the phone over a hour then was told barclays had took the money and bp meant bill payment
i still have the same account but no overdraft etc as when i took the dro out

scarlet55 · 30 March 2011 at 8:56PM

teresa555 wrote: »

hi, thanks for your advice, i don't understand how social fund have changed their decision, i have had no loans since the dro, as for barclays they told me to use the phone on the wall, beside the transaction it said bp which they didnt understand, i was on the phone over a hour then was told barclays had took the money and bp meant bill payment
i still have the same account but no overdraft etc as when i took the dro out

iff your barclays debt was definately included in your dro then you must get in touch with the dro unit and explain everything, including your social fund payment..im sure that they will sort it all out for you...but i cant understand why you were allowed to keep this bank account open as my dro adviser told me to open a new bank account straight away as my bank would close mine.

Debt Relief Orders (DRO) - Information & help thread

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free