A Debt Relief Order (DRO) lasts for one year and then your debts in it are wiped out. But it shows on your credit record for six years.
This article looks at what should happen to your credit record during the DRO year and after it has finished. Some of your creditors may have go tt this wrong, you need to ask them to correct any problems.
You can start to improve your credit rating after the twelve months of your DRO ends, but this will be slow going until the DRO goes after 6 years, when you will see a big improvement.
The reason to start early is that when the DRO and all the debts in it disappear from your credit record, you want some newer good debts to remain, so your record will look great, not empty.
Contents
How a DRO should be recorded
To make sure you don’t miss any problems, check your credit records for free with all the Credit Reference Agencies.
This is what should your credit records should show:
After your DRO is approved:
The DRO will show in the Public Record section of your credit record.
All debts which are in your DRO should have a default date which is the date your DRO started or before.
There will be no change for any debts which do not form part of your DRO, but these (things like student debts and magistrates court fines) do not normally show on your credit record at all.
At the end of the 12 months of your DRO:
You don’t get sent a certificate when your DRO completes, see What happens at the end of my DRO? for details. You can print off your Insolvency Register entry when your DRO finishes as proof – but do this quickly as it disappears after three months.
Your credit record will be updated to say your DRO has completed. The DRO marker will remain on your record for five more years, dropping off six years after the start of your DRO.
You no longer owe the debts that were listed in your DRO.
These debts should be marked by the creditors “to show that you no longer owe money on that account (perhaps by marking the entry as ‘partially satisfied’ or ‘partially settled’ or in some other way)” (quote from the Information Commissioner’s Office) and the balance on the accounts should show as zero.
CCJs won’t change, because there is no way to mark them as partially settled.
At the end of six years:
The DRO marker will drop off your credit record.
Some of the DRO debts may already have disappeared. The rest should go at the same time as the DRO marker, because their default date should be on or before the date your DRO started.
CCJs drop off six years from the judgment date, so they also should already have dropped off by this six-year point.
So now your credit record should be completely clean – unless you have had credit problems after your DRO finished.
The only creditors that will be able to tell you had a DRO after the six-year point are those who had a debt included in your DRO. They may still be able to see the DRO on their internal records.
Correcting problems
There are two sorts of common problems.
1) a default date is after your DRO started
If the default date is later (or not there at all!) it will delay the point at which your credit file becomes clear. You can ask the creditor to correct the record.
Don’t ask the credit reference agencies to do this – they just report what the creditors tell them.
It can take a while for creditors to add these defaults. I suggest you wait four or five months after the start of your DRO before you bother to do this. By then most should be right and you may only have one or two to deal with.
Don’t try to do this on the phone!
Instead send the following letter to the Data Controller for the creditor (get the address from the ICO ), send it Recorded Delivery and keep a copy:
I had a Debt Relief Order approved on dd/mm/yyyy. You can confirm this by checking the Insolvency Register at https://www.insolvencydirect.bis.gov.uk/eiir/.
I am writing to ask you to correct my credit file for [details of your debt with the creditor, including account number or reference number].
At the moment [there is no default date/the default date is dd/mm/yyyy]. This is incorrect and a breach of the ICO guidelines and the Data Protection Act 1998. There should be a default date not later than the start date of my DRO.
Please correct this entry within 28 days or supply me with a written reason why you will not do so.
If the creditor replies saying they don’t know anything about your DRO, talk to the DRO Unit about whether the creditor has been informed.
If the creditor knows about your DRO but refuses to add or correct the default date, complain to the ICO. Attach copies of your letter to the creditor, proof of posting and any reply from the creditor.
One exception – mortgage shortfall debts are unusual in a DRO but if you have one, read How to repair your credit record after bankruptcy which covers these debts.
2) Creditor doesn’t mark debt as satisfied when your DRO has finished
The creditor doesn’t have to mark the debt as fully settled/satisfied so there is no point in complaining if the debt has been marked as partially settled/satisfied.
Give them a few months after your DRO has ended to deal with this. There is no hurry, your credit record isn’t going to get up to being good for another five years.
If a debt is still showing an open balance, send the following letter to the data controller for the creditor:
My Debt Relief Order finished on dd/mm/yyyy. I attach a copy of my Insolvency Service Register entry which shows this.
I am writing to ask you to correct my credit file for the above debt. The ICO guidelines state that my credit file should show that I no longer owe money on that account, perhaps by marking the entry as ‘partially satisfied’ or ‘partially settled’ or in some other way.
Please correct this entry within 28 days or supply me with a written reason why you will not do so.
Again, complain to the ICO if a creditor doesn’t correct the entry.
What if my debt was sold after my DRO started?
Say creditor A (who may be the original lender) sold the debt to creditor B.
The important thing is who owned the debt at the relevant time…
If creditor A owned the debt when the DRO started, they should have added the default to your creditor record at that time. If they didn’t write to them and tell them to do it. Then when that is done, write to creditor B and say you had a DRO and creditor A has now added a default date of dd/mm/yy and ask them to do the same.
If creditor B owned the debt at the time your DRO year ended, they are the one that now needs to mark the debt as settles in some way. Write to them about it.
Is it worth doing this?
Yes. It is worth correcting the dates of default unless they are just a bit late. If they are months or even years late, this delays the time until your credit file is finally clean as these defaulted debts will still show when your DRO itself has disappeared.
It’s also a good idea to get them all correctly marked to show that you no longer owe any money. This doesn’t change your credit score, but it may mean that you are more likely to be able to get credit, probably from a “bad credit lender”.
Having the debt marked as settled also stops the irritation of the debt being ‘sold on’ to another Debt Collector. That isn’t a serious problem – the debt really has been written off – but it is annoying as you have to correspond with yet another person and send them details of your DRO.
Getting positive markers on your credit file
Once your DRO has ended, it’s good to start getting some new, positive credit marks on your credit record.
There is no hurry to do this as your credit rating is going to remain poor for 5 years, but after a while you may want to do what you can to start things going in the right direction.
Can you save regularly?
If you can, then read up about LOQBOX. This is a clever new product that lets you save each month for a year and reports this to the credit reference agencies as loan repayments – so your credit score will benefit as you have taken out a year-long loan and repaid it. There are no fees and you will definitely be accepted for this, no matter how bad your credit score is.
At the end of the year, you will have a nest egg saved up and a better credit score.
Get a “bad credit” card
First deal with the “clean up” process outlined above for your old debts. And make sure that you are on the electoral roll, your address and any other details are all correct with the credit reference agencies. This may take several months to complete if you have to go to the ICO.
Then apply for a Vanquis or a Luma credit card. Vanquis is owned by Provident, Luma is owned by Capital One – if you had a debt to one of these companies in your DRO apply to the other one to maximise your chance of being accepted. If your application is rejected, double-check your credit file really is clean with all three credit reference agencies, wait a few months, then apply for the other card.
These cards charge very high rates of interest. This doesn’t matter because you should aim to repay it in full every month, so you never pay any!
The best thing is to use it once a month for something small such as a tank of petrol and set up the card to be repaid in full automatically every month so you can never forget and pay late.
Your credit rating will improve faster if you repay the full balance every month,
At some point, you will probably want to be able to get affordable credit to spread the cost of a purchase. This is a good time to prepare for that by getting a savings account with your local credit union. don’t plan to use your horribly expensive credit card, or you will be heading back into debt problems again.
This all takes time
If you were expecting the end of your DRO to make a large, immediate improvement to your credit score, it doesn’t.
Getting a bad credit card or saving through LOQBOX isn’t going to magically increase your score to good. But when the DRO and all the debts in it disappear, having these positive markers then will mean that your credit score is looking good, not just empty.
Never pay any firms offering a ‘repair your credit’ service because either they don’t work at all, or they will be only suggesting what I have said here – there are no shortcuts. The template letters here are very likely to work and if they don’t, putting in a complaint to the ICO is the best way to repair your credit.
How much will my credit score change if…
Amigo – not a good way to rebuild credit score
What happens at the end of a DRO?
Jade says
Hi there,
My debt relief order was granted in March 2017, and then discharged as of March 2018. I have checked my credit file and seen that three of my debts included in the DRO are still open and showing defaults up until this day. They are also not being shown as settled/partially settled or satisfied. I was contacted by one which was a car finance company and they are still asking me to pay and changed the amount I need to pay as seen on my credit file. It has been two years since I’ve had my DRO. Should I send a letter asking them to close the account and put the balance to zero?
I’ve managed to get two credit cards with in this time.
Do you think it’s worth getting LOQBOX to help my credit aswell?
Thank you
Jade
Sara (Debt Camel) says
You need to ask all the creditors who have not marked your debt as closed/satisfied in some way to do this. use the letters in the above post. In particular, you need the car finance company to acknowledge that your debt was included in your DRO and so has been cleared.
Your credit cards. are you using them every month and repaying them in full every month?
Jade says
Hi,
Thank you for getting back to me so quickly.
Yes, I am using them and paying them off in full every month.
Also do I pay them off before they generate my bill? So I don’t pay interest or do I pay it before my bill is generated?
Thank you, I will write to them asking them to clear the balance and hopefully removed the defaults after my DRO, so I can continue to try and build credit.
Sara (Debt Camel) says
“do I pay them off before they generate my bill?” Your bill will not contain any interest (well assuming you haven’t taken cash out, or used the money for gambling or foreign exchange). I would tend to wait for the bill then pay the amount on that, so it’s not possible to pay the wrong amount and then get charged interest.
Jade says
Thank you, do you think it’s worth me apply to LOQBOX?
Sara (Debt Camel) says
Do you have spare money that you can afford to save each month? If you do, then LOQBOX is a sensible option – you could put £20 or £30 a month away and you would have completed the years saving and have the money for Xmas 2020?
But if you would struggle to save regularly, then I wouldn’t bother.
Kirsty says
I was granted a DRO last October and it finishes October 11th this year, do I need to send my bank details to them or anything to prove my circumstance haven’t changed?
Sara (Debt Camel) says
No! It is just assumed your situation hasn’t changed. There is no final review.
Amanda Mitchell says
Hello
I have two debts on my credit file that show a default date two months after my DRO started (I will write to them to ask them to put it right) and while both show zero balances, there is nothing to say “partially settled” or “settled”. To me it looks as if the accounts are still in default. Is this right or wrong? I’m not in default now as I don’t owe them anything.
Sara (Debt Camel) says
Are they showing a new default being added each month? Or has that now stopped?
Amanda Mitchell says
That has stopped in favour of the statement “no data available”. However, I have also discovered another account that was included in the DRO which is still showing a balance of £131. It also seems to be showing missed payments up until a few months after the moratorium period started. Show that now be zero?
Sara (Debt Camel) says
Yes, all balances owed should be zero
Kate says
Hi Sarah.
DRO ended January 2019 and credit karma is showing two company’s are showing as open accounts in default but clear score is not showing any open accounts what do I do? Thank you
Em says
Hi,
I sent letters out to some creditors who had the default dates wrong, one of which still had the loan open on my credit file.
They have responded today to state that I need to provide copy of DRO and list of creditors. I have a screenshot of the DRO but why should I be telling them who I owed money to? Surley that is data protection and all they need to worry about is the loan to them
Kirsty Moon says
Hi
How long does it take for the bad mark on your credit file to be deleted from your credit file?
Its been 6 years today since my DRO should it just drop off??
Sara (Debt Camel) says
yes it should!
Karl Jackson says
Hi,
Intrigued to know if the dro dropped off and how it affected your credit score, my is due to come off in Feb and I’ve kept really good credit over the last 2-3 years.
Thanks in advance
Kate says
Hi Sara.
DRO ended January 2019 and credit karma is showing two company’s are showing as open accounts in default but clear score is not showing any open accounts what do I do? Thank you
Steve says
Hi my dro finished in august last year trying to rent house but they say I’m a bad risk Evan though never misssed payment on rent ever do I have to declare my dro when applying to rent and should it have any bearing on my apillity to pay rent
Sara (Debt Camel) says
you don’t have to declare a DRO but many agents will do a credit check.
Michael says
The link in the letter (https://www.insolvencydirect.bis.gov.uk/eiir) only shows entries for those who are still within the moratorium period. The DRO should drop off my credit file in the next couple of days, however there is 1 creditor who still has defaults on my file to exactly 1 year after my DRO started. There is no certificate so I have no proof, is there anything I can do?
Sara (Debt Camel) says
There are two sorts of problems with credit record after a DRO.
Some creditors haven’t marked the debt as being satisfied – then you need proof your DRO completed to show them – If you didn’t print the record off from https://www.insolvencydirect.bis.gov.uk/eiir in time, or you later lost the printout, you can tell a creditor who wants proof your DRO has finished to contact the Insolvency Service’s DRO team to get confirmation.
But if the default date is wrong, you need to go through the process described in the article above in A default date is after your DRO started to get the date corrected.
Nik says
Hello, I applied for a DRO, and was initially approved but then it was revoked due to an error made in the application from bad guidance from the charity helping me through the application. It’s still showing as having a DRO on my credit file – please can you advise on how to get this removed? Many thanks. Nik
Sara (Debt Camel) says
That sounds very unusual – can you say what the error was?
Star says
I was issued a DRO in 2014. There are two accounts on my credit file that are showing as open and defaulted. They’re were included on my DRO, however I cannot remember the account numbers to contact the companies.
Sara (Debt Camel) says
the account numbers would have been on the DRO application.
if you can’t find them, then you just have to write the creditors a vaguer letter saying that the credit record entry for you – attach it – is inaccurate because the debt was included in your DRo which started on dd/mm/yy and s=complated a year later.
Liam Bilton says
Good morning, my first year of my DRO was up last March, therefore nearly on my second year and my debts included all appear on my file still as a balance and not £0 and all state defaulted – not satisfied, particularly satisfied etc.
What should I do about this? Should I write to them all using the template you have shared?
Your help would be hugely appreciated.
Many thanks
Sara (Debt Camel) says
Yes, this is a good time to start the “clean up process”
Liam says
Thank you, once I’ve sent these letters do they have to action it and will I only know if they have if I keep checking my credit report?
Thanks
James says
A few years ago I was granted a DRO with all my debts included. A few of these debts were subsequently sold to Moorcroft even though I had made the original companies aware. These debts are still showing as open accounts on my credit report even though the rest of my DRO debts are closed / “satisfied”.
I’ve raised a dispute with TransUnion who couldn’t help and told me to get in touch with the companies. The companies couldn’t help and told me to speak to Moorcroft who in turn sent me back to the companies.
The credit report is still showing the original company, is it them who needs to close it and should my next step be the Ombudsmen?
Sara (Debt Camel) says
Are all the debts marked as defaulted on or before the start date of the DRO? If not, ask the creditor who owned the debt at the start of the DRO to correct/add the default date.
If the debt isn’t showing as settled/partially settled in some way (reports differ0 then ask the creditor who owned the debt at the end of the DRO to correct that. You can put in a complaint and send it to the Ombudsman after 8 weeks. Or send it to the ICO.
Emma says
Hi,
I sent letters out but been told that the debt is still open on my file and that Its not a mistake.. What do I do now? This is after I sent them copy of DRO etc.
Sara (Debt Camel) says
Is this in writing? Or on the phone? Have they denied the debt was in a DRO or said they had no evidence the DRO had ended?
Emma says
Neither they just stated that their records were not wrong.
This is what they said
We can’t amend your credit report because the data supplier has not authorised any changes. If they say the information is correct, we can’t change it. If they don’t reply during the statutory 28 days we suppress the item. We’d advise you to contact the supplier directly to discuss this matter further.
Who would the supplier be? This one is with Satsuma Loans, I thought they would be the supplier?
Wendy says
Hi sara
My debt relief order finished on the 8th November 2019.
After I completed it I had realised that I had forgotten to put a payday debt into it and at the time the citizen advice lady who helped me with it told me it was too late to put it.
This morning I received a letter from QDR solicitors with the payday debt and another payday debt which was included in my DRO. What do I do about it sara? I am not sure where to go with it. These solicitors bought the debt from Lantern debt recovery services limited.
Sara (Debt Camel) says
who was the lender for the debt you did not include? when did you take out the loan? had you had other payday loans from that lender before the last one?
Wendy says
Hi sara thanks for your reply
The lender was sunny and I took it out january 2015 and I only had the one loan from sunny.
Sara (Debt Camel) says
I was hoping you might be able to win affordabilty complaint about the loan – but as there was only one, that is unlikely. How much is the current balance?
Wendy says
It is for £601 and I am worried they may issue a ccj while I am trying to clean up my credit score
Sara (Debt Camel) says
If you offer monthly payments they are much less likely to go for a CCJ. Any chance of making a full & final settlement offer?
Did you borrow from any other payday lenders? If you could win any payday loan affordability complaints that could get you some money to settle it?
Wendy says
I might offer a full and final settlement offer and see what they say sara thank you. I have already won complaints from wonga but that was a few years ago. Thank you for your advice sara
Martyn says
Hi I am currently on a dro it was set up in july 2019 so it comes to an end in july 2020,,
When it finishes can I start getting money into my bank account say 1000 plus or will they be back in contact and revoke it??thanks
Sara (Debt Camel) says
nothing that happens after it finishes can affect your DRO. (Exception – unless it relates to something earlier, for example if it turns out you owned a house in Spain – you should never have been eligible for a DRO in the first place.)
It is incredibly rare for a DRO to be revoked after it has ended, just a handful of cases a year. The Official Receiver has to go to court to do this.
It isn’t anything you need to worry about. Go out and earn a million. Win the lottery. When a relative dies, you can inherit. You have your clean start.
Amber says
Hi I took a DRO out in Dec 2014 and it ended 12mths later. I have kept my credit file clean since and have successfully opened accounts and credit cards and paid off in time etc. So the 6 years is officially up this year in Dec (2020). I really want to apply for a mortgage as soon as I’m able (and now that we have a 30% deposit). My question is should I wait until after Dec or would it make any difference applying for mortgages a couple of months before Dec?
Thank you
Sara (Debt Camel) says
You can talk to a mortgage broker but my guess is waiting until after December will make a BIG difference to the mortgage rate you would be offered.
If you are told to take a bad rate and then remortgage in a couple of years i would suggest not doing this and waiting a few more months. who knows what the house market will be like in a couple of years, you may not be able to remortgage and could be stuck on a very bad rate from a dodgy lender.
Wendy says
Hi sara
I am panicking with a problem. I am in the midst of trying to tidy up my credit report as my debt relief order finished on 8/11/2019. I sent off a few emails to a few creditors and one has asked for a copy of my DRO. I posted it last week and it came back on friday stating that they do not deal with DRO’s. The problem is now that the address I sent it to which is the address which is on my actual DRO for that company isnt the right address. When I looked at an old letter for them the company TM legal services their address is London but the address on my official DRO letter is for blackpool. I am not sure how this has happened and will that mean my DRO cant be enforced for that debt. Thank sara. Wendy
Sara (Debt Camel) says
I suggest you ask TM by email where you should send the details of your DRO. If you don’t get anywhere go back to the adviser who set up your DRO.
Wendy says
Hi sara
I received an email from tm legal services giving their address of blackpool. If I send a copy of my DRO to them with a different address of their business will that still be okay to do that? The debt amount and reference number are still the same. Thanks. Wendy
Sara (Debt Camel) says
It should probably work. Try it.
Wendy says
Okay thanks sara
Chris says
Hi,
I have a problem, my DRO finished 2019 July, I did not print the certificate and don’t have any letter… my debts still show on my credit report. I’ve tried the gov website but all the records about my DRO has been wiped out. .Is there anything I can do with that? Thank you.
Sara (Debt Camel) says
you can tell a creditor who wants proof your DRO has finished to contact the Insolvency Service’s DRO team to get confirmation.
Leon says
Hi,
I’m hoping you can help. I had a debt relief order which began on 25/02/2015.
This included a debt with Virgin Media and they have marked the account as settled on 06/05/2015, however they are still recording the default every month on my credit report.
Is this allowed or should they have stopped reporting the debt as outstanding once the DRO began?
Thanks
Sara (Debt Camel) says
What is the balance showing?
Leon says
Thanks for coming back to me, its showing a default of £137.00, reported every month
Sara (Debt Camel) says
That should be showing zero. Go back to them and ask them to correct this as the article above suggests.
Mimosa says
Hi Sara and everyone, Would you be able to let me know please, how and where exactly a DRO is recorded and shows on a credit file, is it where usually a Bankruptcy order wold show? Do I need to look for a general note or each lender has to mark dro opposite the exact debt?
Sara (Debt Camel) says
it is shown where bankruptcy would be shown.
Mimosa says
Thanks Sara. All the best!
Alex Long says
Hi, my DRO ended in May last year but I can see on my credit report that 4 of debt companies have the individual debts marked as “In Default”.
I’ve only just noticed this thanks to this article. Will I need to write to each one and ask them to close the debts completely? As explained in the article?
Many thanks
Sara (Debt Camel) says
yes, separate letters to each debt where there is a problem.
Nic Murphy says
Hi this query is not reference a DRO specifically so apologies if posting is not allowed / correct.
But i was hoping for help on cleaning my credit file in general I don’t have a dro but do have poor credit. Any guidance would be appreciated.
Many thanks in advance.
Sara (Debt Camel) says
That depends on why your credit score is poor… Have a look through this list of article and read the ones you think sound relevant – there may be several! https://debtcamel.co.uk/tag/credit-rating/
Sam says
My DRO is due to drop off my credit file after 6 years in a couple of weeks, I have a few questions, will my credit score improve once it drops off? I have currently go some debts on there what I need to out affordably claims in for. So my credit file does have some bad markers, but I am working on that, but in the mean time will it an improve slightly with the removal of the DRO?
Sara (Debt Camel) says
yes removal of the DRO should improve your credit score. how much depends on what else is on there that is “bad”.
ROGER SMITH says
Hi, I was discharged from a DRO on June 26th 2020. All the creditors have marked the debts as settled or partially settled apart from one which is paypal. They initially stated to me that they would remove or had removed it then they changed their position. They refuse to reply to emails or hang up on the telephone. Will writing to them help, if so what address. I had a paypal credit account which i would advise anyone thinking of applying for one to seriously consider it after my experience. Thank you.
roger
Sara (Debt Camel) says
Send a complaint here: https://www.paypal.com/uk/smarthelp/complaints and then send it to the Financial Ombudsman if it is not resolved within 8 weeks.
James says
Can my credit score improve after the 1st year once all creditors have wiped my debt to zero or will in remain ‘poor’ for the six years that it’s on your credit score.
Sara (Debt Camel) says
It’s going to remain poor for 6 years. But read the article above for what you can do to start the improvement process.
Jo says
Hi debt camel, I went into a DRO in Feb 2011 via Citizens Advice, and over the years I’ve had debt collectors keep chasing me for a bank loan that went into the DRO. I keep sending them the DRO details but the debt clearly gets sold on to the next thug collector.
I’m now being chased by another agency (about the fifth one since 2011) demanding I contact them because it’s an emergency. I don’t even know how they got my landline number as I don’t give it out. Since they started ringing the landline I am now getting phone calls on my mobile from other debt collectors from different parts of the country!
I have checked Clearscore today and checked the defaults and possessions and everything is ‘on track’ so I don’t know where they are getting their information to chase me for the money? I haven’t taken a loan or HP out since I went into the DRO and it’s the best thing I ever did. But it infuriates me that there is a cottage industry of sorts where they sell people’s information on and harass you with threatening or alarming phone calls and letters.
Sara (Debt Camel) says
This is really unusual. Can you name names? Who is the current debt collector chasing you? And do they own the debt or are they collecting on behalf of another creditor?
Jo says
It’s AJJB LAW, in this particular case it’s ‘you must contact us because it’s an emergency,’ phone calls, but no letters. These others who contact me on my mobile are missed calls but when doing an internet check they are solicitors and debt agencies that don’t seem to be related to the above firm. I’m assuming it’s to do with this bank loan because every other debt collectors who has contacted me previously after the DRO has been chasing on behalf of this bank loan. I would have thought almost 10 years after filing for a DRO nobody has the legal right to be chasing me for money? It wasn’t a mortgage or anything, just the usual unsecured loans and store cards. I’m ignoring these calls because there is no way I’m talking to anyone over the phone.
Also, I forgot to ask, if I did owe money to anybody, wouldn’t it show up in my credit check and why would it still stand after 10 years?
Sara (Debt Camel) says
I don’t know the name.
if it is the bank loan that was in the DRO, then it’s going to be pretty easy to tell them when they can go…
If it isn’t but it is some other random debt which you may or may not owe, then I think it’s probably better to find out about it.
if I did owe money to anybody, wouldn’t it show up in my credit check and why would it still stand after 10 years?
Plenty of legal, enforceable debts do not appear on your credit record. And as you do not KNOW this is the old debt, you do not know how old it is.
Jo says
It looks like they got set up this year. I don’t understand why they are ringing instead of sending out an official letter with contact details. Unless they send a letter I don’t think I’ll be connecting with them seeing as all my debts were out into the DRO and no longer enforceable.
Nicholas Florides says
I’m in the midst of writing letters to the data Controllers for creditors that have not marked my accounts as either settled or satisfied.
I have 2 accounts that are with Halifax and bank of Scotland. I believe they both have the same data controller ie Bank of Scotland PLC. Will I need to send 2 separate letters or can I write one letter with each account included in the same letter?
Sara (Debt Camel) says
One letter but give the account details for each account.
Nick Florides says
Thanks for your help, will they back date the settled/satisfied dates to when my dro finished in 2018 or are they likely to use current date?
Sara (Debt Camel) says
They should be backdated. But it doesn’t really make much difference to you what the settled date is. If the default date is correct it will all vanish when your DRO goes.
Nicholas says
Heard back within 2 weeks from the creditors after writing letters to their data controllers. They’re going to amend records to show debts within DRO as partially settled/partially satisfied. Is this correct or should they be marked as satisfied /settled with a zero debt?
Sara (Debt Camel) says
partially settled/satisfied is fine
Samantha Woodcock says
Hi
I had a DRO in May 2018, discharged in May 2019. I also have 2 ccjs which are showing as closed even though I never paid them as the debts were included in my DRO. The problem I have is I can still not get credit anywhere. My credit score shows I have no debt, and have not missed a payment for any type of bill in over 2 years. I did loqbox for a year and have my utilities bills on there, and have only 3 searches for credit in the last year, one for my mobile phone contract which was accepted and been paid on time ever since. The other 2 were both with very, two because I was just trying it the first time not thinking I’d be accepted, then the second time I did actually want to go through with the credit account–it was accepted there and then but the next day I received notice that they had discovered more information and would not be allowing the account for me. How am I supposed to improve my credit score when nowhere will allow me credit to improve upon my score. I would desperately like to borrow or get credit for a 2nd hand car, and would also love to be able to get a mortgage one day but it all seems impossible. I am in a steady job with income of 24k a year so affordability not an issue. What can I do? Any advice will be greatly appreciated
Sara (Debt Camel) says
Sorry but it always took time for credit scores to start to improve. And now, in the pandemic, all lenders have tightened up their lending creiteria.
I suggest no more credit applications for a while. Get another year’s LOQBOX.
Car finance – the first finance you are likely to be offered will be at a horrible interest rate – perhaps 30-50%. Can you start putting aside the money you would expect to pay for car finance now? Having a large deposit saved can make a big difference. Also there is a chance that second car prices could really drop in the next year if things go badly for the economy.
Mortgage – you won’t be able to get a mortgage until the DRO drops off your record after 6 years. So that is your target, you need to save up a deposit by then. And of course that means in practice spending as little as possible on a car.
Bethany says
I have this same problem. I had a DRO granted in July 2017 so should be July 2018. My credit report still shows 2 debts / accounts as active, with a default for each month since and still defaulting. What should I do?! I called Barclays (one of the debtors) who say that I need to contact the credit score people to update this (I have just emailed TransUnion asking for advice). Should I be writing a letter? I feel so stupid to have left this so long – I thought that this was probably normal until the 5 / 6 years have passed but now realizing it may be a big mistake on my part!!
Thank you!
Sara (Debt Camel) says
Send Barclays and the other lender a complaint. You want the default date on or before Jukly 2017 and the settlement date in July 2018. This is their job, not Transunion’s. Also check Experian and Equifax so you can see which credit reference agencies need to be correceted.
Terry says
Hi Sara,
I have successfully completed my DRO in January 2021 but a lot of the debts in the DRO have not been removed from my credit file, I understand it may take a few months, but I started contacting the debts in my DRO to advise the DRO is complete and they should remove the negative information on my credit file to reflect that, either by, a “settled or satisfied” statement.
Is this correct?
Also I requested a SAR with payment interests to be returned to me, through the form on debt camel to automoney (mobile money). They proceeded to say that I requested this in october 2019 and because I did not respond there is nothing I can do and the 6 month is up to complain to the Financial Ombudsman.
Is this also the case? (I did however send a letter to the Financial Ombudsman via their online portal, incase mobile money were just trying to put me off)
Thank you for your valuable advice.
Sara (Debt Camel) says
The article above looks at cleaning up your credit record after a DRO.
There is a 6 month time limit to take a case to FOS. Two exceptions:
– you have a very good reason (eg major health problem) why you could not go to FOS in that time limit, you will need to explain what this is to FOS
– when the firm rejected your complaint but they failed to inform you that you had the right to take the complaint to FOS but this has to be within 6 months
Sophie Sheehy says
Hello,
If I do all I can to build my credit score up over the next few years, how much do you think my score will improved when all bad debts are removed.
I’m 2 years in and my score is 442, I’ve just taken out a credit card and aim to spend 9% a month and pay in full early each month.
Sara (Debt Camel) says
If all the bad debts have gone and your credit record only shows you full credit card repayments – plus probably mobile bills? and car insurance? – your credit record should end up being great.
PS – don’t plan to pay your credit card bills “early” each month. If you pay “too early” it doesn’t help. The best thing is to set up the bills to be paid in full automatically by direct debit. That way you can never forget and will never have to pay interest.
Vaughn says
I am in the later stages of applying for my dro with CAP (paperwork and stamp of approval hopefully done in the next week or 2) so once this is done do I wait for the year to be completed before applying for credit cards or loqbox to help improve my credit rating or do I do this say in a couple of months? I’m hoping to build my credit rating up over the 6 years as well as save so I can get a mortgage so want my credit report to be at its maximum that it can be for someone coming out of a dro to give me a much better chance
Weatherman says
Hi Vaughn
In order to have a good credit rating 6 years after the DRO, you don’t need to get credit immediately. And you might find it hard to get anyone to offer you credit, or have to pay a higher rate – which could just see your debt problems happen again!
So one option would be to not take out credit for a couple of years, if that’s possible. As the DRO gets older, its negative impact on your credit report will reduce, although you might still find it relatively difficult/expensive until the DRO drops off altogether.
If you did want to take out credit during the moratorium year, you’ll need to inform the lender you have a DRO if you’re taking out £500 or more of credit. After the year is over & your debts are gone, you don’t need to tell them, although they’ll be able to see it on your credit report.
Sara (Debt Camel) says
I agree with Weatherman, no need to do anything for a couple of years.
Your credit will never get to good until the DRO has dropped off. After 6 years when the DRO is gone all your need is a few years of positive marks on your credit record. You don’t need to stretch to have 5 or 6 years.
So just settle back and get the DRO moratorium year out of the way. Then wait a few months and see if any entires on your credit record need to be corrected (see article above.) And only after that is all done think about new credit applications.
Sara B says
I am really confused by some defaults on my account. In 2015 I was granted a DRO that included debts to Vanquis and Aqua. Both these debtors continued to contact me until I updated them about the DRO.
Recently I became aware that these debts hadn’t been properly written off after the DRO ended and still showed a balance outstanding. I have contacted them about this and although they have updated the record to show the correct date of when the DRO started, they still show a default balance OR have now zeroed but the previous five years with a balance still show as defaults. I accept a default stays on my account for 6 years, but what should be shown each month, the figure that originally defaulted or a zero if the debt was settled/partially settled under a DRO.
In January I received a collections notice from Lowells for a debt to British Gas, again another debt covered under the DRO. When I look at the default history, the defaults only started in the past two years and not for the figure I owed them. And the figures change from month to month. When I contacted Lowells they closed there account and sent it back to BG. BG then zeroed the account and marked it as settled, but I still have new defaults from the past two years showing, when the debt was covered by the DRO in august 2015.
Weatherman says
Hi Sara
These debts should be showing as settled/satisfied (or partially settled/satisfied) if they were included in the DRO. Send the creditors the letter drafted under point (2) in the article above, and complain if they still don’t fix it!
Sara B says
OK, I will speak to them.
I just want to clarify though, if the debts have been partially settled what should have happened to the outstanding balance after the end of the DRO? It is still showing and they’re saying that is because the default will stay there six years.
Weatherman says
If the debt’s been fully or partially settled, the outstanding balance doesn’t matter – a creditor will see that you no longer need to pay anything towards the debt.
Sara (Debt Camel) says
There should be a default date on or before the date of your DRO. And the balance should show as zero with the debt being shown as settled/partially setled/satisfied or partially satisfied.
But if the default date is correct in 2015, the debt will drop off your credit record this year on the 6th anniversary of your DRO. It’s up to you if you want to spend a lot of time getting the balance zeroed for the short time remaining.
The BG account however does not sound correct. Do you still have an account with BG?
Sara B says
No, the BG account was closed in August 2015 at the time of the DRO as we moved to a different supplier as well. It says the account is settled on Experian, yet says there are issues with the account which is the default payments from the past two years. I’ve been in contact with them but not had anything back yet.
The other account has a default date after the DRO date and isn’t showing as settled, even though the credit card company said they would change this. One of the accounts has now changed the date of the default and it shows partially settled (finally!)
Sara (Debt Camel) says
OK so you need to be persistent about the BG account as that is not going vanish at the end of the year when the DRO and other debts go. There should be no records for the pst two years. Send them a complaint if they do not correct it.
Marius says
Hi i have a DRO wich start on 9 September 2019 on credit report the account for debt are still open what should I do ?I need to ring every creditor to update? Thanks
Weatherman says
Hi Marius
If these debts were included in the DRO then yes, you’ll need to contact each one (I would do it in writing, using the template Sara’s provided above).
Dave says
Hi
I was hoping to get some advice.
I was discharged from my DRO in January and pretty much all my creditors wrote off my debt, marked accounts as settled within a few weeks of the DRO ending, so all good
Except Vanquis. I contacted them using the letter from your site (very helpful thank you!) and sent it to the complaints team as they have my default date incorrect (only by a month…but still) and to ask them to mark the debt as settled or satisfied.
I sent my complaint to their complaints team at the start of March, and since then I’ve heard nothing. I chased it up a couple of weeks ago and got a reply that they have 56 days to look into my complaint and respond and if there’s anything they can do to help, to contact them, despite them completely ignoring the rest of my email.
I responded again to ask why it was taking so long, given other companies were on the ball, even 2 that I thought would be really problematic were resolved in a couple of days
The 56 days for the complaint is up on 29th, meanwhile they’re still reporting the default and updating my credit file
What do I do next as I’m unsure where to complain. Should I be contacting the FOS or the ICO, is one better/quicker than the other.
Many thanks
Sara (Debt Camel) says
I suggest you relax for a bit. There is no desperate hurry to get this sorted.
Wait and see in Vanquis reply.
Dave says
Hi
I’ve still not had any response to my complaint which is past the 56 day guideline as per the FCA
I’ve emailed complaints and even the CEO office for Vanquis and heard nothing
So should I now complain to the FCA, FOS or ICO and which one is quickest or most efficient.
Because of my debts I had a breakdown and my DRO was the first step in getting myself back on track, and now I still have Vanquis hanging over me and I can’t move on until its sorted and the matter closed
Thanks
Sara (Debt Camel) says
No point in complaining to the FCA – they do not look into individual complaints, that is what FOS is there for.
I don’t know how easily/fast these complaints go through the ICO. FOS is pretty easy but not fast.
I understand you want this loose end tided up but honestly this will make no difference to you at all if it is sorted this month or in a year’s time. My suggestion in the article above was to wait a few months after the end of your DRO before even sending in a complaint.
Dave says
Thanks for your reply
I do want this resolved but it is making a difference to me in that Vanquis are being so difficult and ignoring my complaint which is only adding to my anxiety. I had a serious breakdown over my debts, and Vanquis have been difficult from the start, not accepting the DRO, then still sending me payment reminders and now the complaints team are being absolutely useless and ignoring my emails or I’m getting the standard “we have 56 days, if there’s anything else let us know”
Even other companies who were an absolute nightmare at the start of my DRO, such as 118 118 and Drafty, when I contacted them to let them know my DRO had ended, they updated everything within a couple of weeks and I didn’t need to send anything in
I know it’s only one creditor but my debts have caused me so much stress, damage to my mental health and made me physically ill that I just want to get it cleared up as I feel like I can’t move on
Sara (Debt Camel) says
And it is your right to get this resolved – Vanquis are in the wrong. I am just pointing out it will make no difference at all to you how soon this happens.
Bev says
Hi. I had a DRO in Aug 2017, satisfied Aug 2018. I have recent noticed on my credit file that two of the debts carried on running as late payment up until Aug 2018 they were then satisfied but it will be Aug 2024 before they drop off my credit file. One of the debts was with British Gas and on the gas account the registered a default in Oct 2016, but they left the electric one running as late payment. Obviously the default will drop off next year, but the late payment one will stay until 2024? Do I ask them to correct it to a default as the gas one is or leave them alone as now satisfied? Thanks. Any advice would be great.
Sara (Debt Camel) says
Yes, ask them to change the date of default to be the same as the start date of the DRO. Then all the debts in your DRO will drop off in 2023, if you don’t do this, you will have a default on your credit record fir an extra year which isn’t right.
Bev says
Hi Sara. The default was added In Oct 2016 on the gas but no default was added to the electric just late payments? Step change advised to leave it but if it was a default in Oct 2016 it would drop off Oct 2022 wouldn’t it? Should companies leave them as late payments up until your DRO is satisfied?
Sara (Debt Camel) says
You can ask them to change it to Oct 2016, but it is just simpler to ask for it to be the same as the DRO start date. They can’t argue abiout that – well if they try you can send your complaint to the ICO who know what the rules are…
Your credit score will never get to good until the DRO goes, so there is little benefit in haveing one more default drop off earlier than that point.
Skyfall66 says
I’m currently in a debt relief order which ends in august, I’m just wondering what the best route to go down with rebuilding my score would be? Of course I know this isn’t a quick process and nothing drastic is going to change for the next 5 years but I would like to make a concerted effort to improve what I can .
Thank you in advance
Sara (Debt Camel) says
The article above looks at what you can do. First make sure all the debts in the DRO are correctly marked (defaulted on or before the start of the DRO, then satisfied or part satisfied from the end date). There is no point in starting this until three months after your DRO ends – some lenders aren’t fast to update records so just give them some time.
Second I would say LOQBOX. Then after that finishes a year later, think about one bad credit card.
Carl says
Hi my DRO ended in october 20 all of the debts have shown as settled and no longer reporting to experian etc, but marbles credit card continue to report a default marker each month and the default date is november 19 not october 19 ,i have reported this to the CRAs but nothing ever happens
Sara (Debt Camel) says
It’s useless reporting this to the CRAs, you have to complain to Marbles.
Harry says
Hello,
So do I get the Loqbox, and after 12 months another one, and after 12 months next one to keep improving my credit for 5 years after DRO discharge?
Sara (Debt Camel) says
Can you afford a regular monthly saving amount?
Harry says
Yes :)
I got discharged from DRO in January. My loqbox finishes in December. I was just wondering whether I should get another one after that and keep taking one every 12 months until DRO comes off my credit file?
Sara (Debt Camel) says
yes you can carry on getting a new LOQnox. After a cou[ple more years you may want to get a credit builder card, but you have to be very careful never ever to borrow more than you can repay in full at the end of the month. If you can do this it will help your credit score a lot. See https://debtcamel.co.uk/credit-builder-cards/
Hrry says
I already got capone card with £300 limit, second lvl card with £500 limit (using <20% and paying off in full) + a credit builder 'loan' from a credit union for 24 months (I'm in my third month), hence wondering if continuing with loqbox year after year is still something I should be doing.
Sorry, should've really write all this info in my first post :)
Sara (Debt Camel) says
in that case there isn’t much point with the LOQBOX. Not taking out any more credit is a better idea – you have enough.
Harry says
Thank you Sara :)
All the best!
Mario says
My DRO is nearly over, but EE set the default date 6 months after the start of the DRO. I wrote to them using the Debt Camel template, it took Royal Mail 11 days to deliver it(!!) but it got there. I got a reply from EE saying I need to call them. I may or may not call them but I have made a complaint to the ICO as I shouldnt need to call them, it explained everything in the letter. Should I call EE or just leave it to the ICO?
Sara (Debt Camel) says
If using the phone makes you very anxious, then don’t. Otherwise phoning them may be the quickest way to get this sorted.
Mario says
Thanks for the reply. I actually did try to call them. On the letter they sent, it gave instructions on how to call them, which I followed but didnt work as the stupid automated service kept asking me for my mobile number which I cant remember. I did try the chat online with them but it was another automated chat. I will just leave it to the ICO, honestly I dont need the stress.
Mario says
Thanks for the reply. I did call them, they said they would adjust it after the end of the DRO which is in 8 weeks. Unless my income changes significantly in the next 8 weeks, which going on the past 10 months its not unless there is some kind of miracle or I win the lottery, the DRO will end and then I can go about fixing my credit.
rachel says
hi sara,
i have recently had my dro revoked and it is still showing on my credit file. there is a note on the file to say that it has been updated along with a set aside date but it is still showing on my credit report. Is this normal? Surely the DRO should be removed if i am no longer in it.
thank you!
Sara (Debt Camel) says
This is normal 😢
The same happens with an IVA that fails. That happens in about a third of IVAs – it’s rare, only 1%, with DRO.
It is very annoying if you have inherited a lot of money and now cleared your debts, that you have to live with this marker.
But if you still have the debts and can’t clear them quickly, then often your best option is bankruptcy as soon as possible.
Can you say some more about your situation?
Rebecca says
That seems unfair really especially for people that have cleared their debts!
Unfortunately mine was revoked due to a change in circumstance.
However a lot of my creditors have not yet been in touch chasing the money. I would say around 20% have been back in touch.
Is this normal also?
Sad to hear that it will continue on my credit file but in a lot of these circumstances it seems it’s not quite fair!
Thank you
Sara (Debt Camel) says
It can take quite a time. Is there a reason why you can’t go bankrupt, because doing that asap is often your best option?