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Capital one and DRO help
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gellerbing
Posts: 350 Forumite
I'm waiting my DRO application to be checked. I contacted my creditors to explain that im getting advice from step change and asked for breathing space whilst waiting for advice, i haven't told them I've applied for a DRO yet incase for whatever reason its rejected and planned to tell them once i get asked for the DRO payment. Anyway capital one have written to me thanking me for letting them know about my financial situation, but they have given me an income and expenditure form so that they can set up a payment plan for me. Do i send them this and go ahead with the payment plan until the DRO is sorted? Or should i just tell them i have applied for a DRO and awaiting the outcome before i can do anything else?
Wins: Cushelle Koala, Mama tea bundle, coconut ice cream recipe book
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Hi Gellerbing,
You need to be careful of 'preference payments' when applying for a DRO. This is where you pay one debt in preference to the others. It is not normally an issue if it is a priority debt (like rent, or council tax) but it is not advisable for a credit debt, especially once you have started the application.
I would suggest you talk to Step Change, because depending on what stage the application is, a DRO hold action letter could be the best answer. I appreciate that you are worried what will happen if the application is unsuccessful, but please don't worry. Even in that situation, you can write back to your debts in the future and negotiate, the DRO letter won't prevent that being an option.
Laura
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
Hi,
Thank you for your reply. I had a feeling it would have been seen as a preference payment so thought I'd check first.
I emailed my credit report to them yesterday and should hear back within 10 days, so once i get a reply I'll do a hold action letter, i feel a bit more at ease knowing a DRO letter won't prevent me negotiating with the creditors at a later date.
Thank youWins: Cushelle Koala, Mama tea bundle, coconut ice cream recipe book0
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