Payday loan dishonour fee & DRO

A question about : Payday loan dishonour fee & DRO

My daughter having got into financial difficulties has decided after much thought to apply for a DRO as she cannot manage the payments necessary for an IVA on her meager benefits income.

One of the debts is with PoundsToPocket and she informed them last week that she was applying for a DRO and they said that they would hold off with any demands for 28 days. Then this morning she received a letter demanding a Ј40 dishonour fee. Now am I correct in thinking that due to the impending DRO this cannot be pursued and it may just be that the letter was sent out before she informed them?

thanks

Best answers:

• If the debt is covered by the IVA, and the IVA is still live/open, then the charge is worthless as interest and charges must be frozen once an IVA is accepted.
  If the debt occurred after IVA then she may be in breach, depending on how much is owed, but as she is now looking at DRO instead then that is splitting hairs as well (unless the balance takes her over Ј15k).
  Be aware that if the IVA is still open, most I.P's will keep it that way until PPI has been investigated. If that is the case, best to co-operate with that process to get to the end quicker.
• No problems. She just adds Ј40 to the balance figure when she submits her application for a DRO
  If I understand your first post correctly, she has neither an IVA or a DRO as things stand.
  As a general point she should not be informing creditors what she intends to do. Inform them when she has done it.