Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

    • Gellerbing
    • By Gellerbing 6th Mar 18, 10:32 AM
    • 28Posts
    • 2Thanks
    Capital one and DRO help
    • #1
    • 6th Mar 18, 10:32 AM
    Capital one and DRO help 6th Mar 18 at 10:32 AM
    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?
Page 1
  • National Debtline
    • #2
    • 6th Mar 18, 11:26 AM
    • #2
    • 6th Mar 18, 11:26 AM
    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.

    We 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 Steps
    • Gellerbing
    • By Gellerbing 6th Mar 18, 4:06 PM
    • 28 Posts
    • 2 Thanks
    • #3
    • 6th Mar 18, 4:06 PM
    • #3
    • 6th Mar 18, 4:06 PM
    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 you
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,509Posts Today

6,564Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line?

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin