Debt Relief Order - advice needed 're bank

Drohelpneeded · 14 July 2017 at 10:00AM

Hi,

My husband is currently in the process of setting up a dro via Stepchange. All paperwork has been sent off and he's paid the £90 fee.

The final thing they've asked him to check, is if he's allowed to carry on banking with his current bank once he has the dro.

My husband contacted Barclays and they said that it may affect his account - they can't really give him a straight answer.

So we've been reading up online about it all and as he has a Barclaycard that's in arrears and will be included in the dro, am I right in thinking the safest thing to do would be to open up a new bank account with a different bank?

My main concern though is that he's now alerted Barclays to what he's doing eg getting a dro. His next set of wages are due to go in on 25th July. I'm worried his account will be frozen or the wages taken from it and put on the Barclaycard to put towards paying that off. If that happens we won't be able to pay our rent and bills.

My husband has spoken to the finance manager about what the cut off date for changing back accounts is, and the pay has already been processed for July and August so there's no way to change it. The earliest they can do it is for September. (The place closes next week for the summer).

So does anyone have any suggestions of what we can do? It's frustrating that he's all set to go with the dro as it's paid, but this issue is holding it all up.

Thanks for any replies

Guest101 · 14 July 2017 at 10:29AM

Drohelpneeded wrote: »

Hi,

My husband is currently in the process of setting up a dro via Stepchange. All paperwork has been sent off and he's paid the £90 fee.

The final thing they've asked him to check, is if he's allowed to carry on banking with his current bank once he has the dro.

My husband contacted Barclays and they said that it may affect his account - they can't really give him a straight answer.

So we've been reading up online about it all and as he has a Barclaycard that's in arrears and will be included in the dro, am I right in thinking the safest thing to do would be to open up a new bank account with a different bank?

My main concern though is that he's now alerted Barclays to what he's doing eg getting a dro. His next set of wages are due to go in on 25th July. I'm worried his account will be frozen or the wages taken from it and put on the Barclaycard to put towards paying that off. If that happens we won't be able to pay our rent and bills.

My husband has spoken to the finance manager about what the cut off date for changing back accounts is, and the pay has already been processed for July and August so there's no way to change it. The earliest they can do it is for September. (The place closes next week for the summer).

So does anyone have any suggestions of what we can do? It's frustrating that he's all set to go with the dro as it's paid, but this issue is holding it all up.

Thanks for any replies

That's not true. The pay for July, maybe they've processed, but not a chance they've done august. He could be off sick for the next 5 weeks.

He needs to do a formal change of details at work. These can be changed very easily for payroll

Drohelpneeded · 14 July 2017 at 10:34AM

They've said they can't physically do it as there just isn't enough time due to them closing in a few days. Either way, we're screwed either way for July if his account gets frozen 😕

sourcrates · 14 July 2017 at 11:06AM

Hi,

Dont worry, creditors are not allowed to seize assets or cash once a DRO has been granted.

There is no reason for them to freeze his account, it is not bankruptcy.

The DRO period normally lasts for a year. During the period of your DRO you don't need to make any payments towards the debts listed in the order. The creditors of those debts won't be able to take any action against you either.

So relax.

Drohelpneeded · 14 July 2017 at 11:19AM

Thanks for the reply. So should he still wait and change bank accounts or should he just tell step change to go ahead and send the application?

I think the worry is now Barclays know about the dro, that when his wages go in on the 25th, if the dro isn't granted by then that they will take the wages to pay for the credit card.

sourcrates · 14 July 2017 at 11:42AM

Drohelpneeded wrote: »

Thanks for the reply. So should he still wait and change bank accounts or should he just tell step change to go ahead and send the application?

I think the worry is now Barclays know about the dro, that when his wages go in on the 25th, if the dro isn't granted by then that they will take the wages to pay for the credit card.

Hi,

Please stop panicking, the system does not work like that.

Dosent matter what your husband told Barclays, there is a process to be followed, under the terms of the agreement he and they both signed

You are referring to the right of "set off" by a bank, now whilst its true they could seize the money without warning, it is unlikely to happen.

Full information here, and how to ask for the money back if they do take it, note, they must leave you with sufficient cash to pay essential bills etc, also if you are in financial difficulties its unlikely this action will be taken anyway :

http://www.moneysavingexpert.com/banking/setting-off

StopIt · 14 July 2017 at 11:42AM

Drohelpneeded wrote: »

Thanks for the reply. So should he still wait and change bank accounts or should he just tell step change to go ahead and send the application?

I think the worry is now Barclays know about the dro, that when his wages go in on the 25th, if the dro isn't granted by then that they will take the wages to pay for the credit card.

The process is rarely that quick when it comes to the right to set-off.

However, I'd be setting up a new, non linked bank account today, and telling the payroll debt to change the payment details as a matter of urgency.

fatbelly · 15 July 2017 at 8:56PM

Although I think it's safest to have a new bank account when you've got Barclaycard/ Barclays combo in a DRO, I have a colleague who tells me they don't in practice do set-off between the two.

That's not to say they couldn't, though.

[Deleted User] · 15 July 2017 at 10:49PM

I'm sorry I had a small debt with Barclays in 2012 included in a debt relief order as they wouldn't help (it was for under £15) and the final nail in the coffin as they refused to help in any way to the point of crying outside Barclays in Colchester High Street.

As advised to me at the time by the intermediary doing the DRO application Barclays did not hesitate to close the account (even being their basic account at the time) down. Straight away.

Have never banked with them since and never would under any circumstance. The Halifax thankfully retained me from what was an easy cash account as I remember at that time, which was far better then one of those pre paid accounts at the time that it was said I'd end up with but didn't, it is probably the only positive I can offer you.

Drohelpneeded · 17 July 2017 at 5:50PM

Thank you for all the replies

To be on the safe side he applied to open a bank account with natwest online. We had some technical problems though so a letter is being sent out this week, and when he's received it we can go in and open the account.

We clicked the button to do the 7 day switch thing so I was hoping it would happen in time for his payday but doesn't look likely now.

He has given his payroll department my bank details so I'm really hoping they'll be able to change them in time but we will have to see. He can then give them his new bank details when he goes back to work in September.

Thanks so much for all the advice

fatbelly · 17 July 2017 at 5:54PM

Just be aware that Nat West is the only bank that routinely scans the insolvency register to see if any of their customers are insolvent.

They then downgrade the account to a basic one.

Debt Relief Order - advice needed 're bank

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