Thousands of Brits due £90 refund after changes to debt rule

A significant change in debt regulations last year could see thousands of UK residents pocket a £90 refund. The administrative fee for setting up a Debt Relief Order (DRO) was scrapped in April 2024.

A DRO offers a respite from debt payments for a year and stops creditors from hounding debtors. Before its abolition, there was a £90 charge to set up a DRO.

The Insolvency Service has found that many started the DRO process but did not see it through, making them eligible for the £90 fee refund. Since 2016, about 5,000 people began the DRO process before the April change but did not finish their application.

READ MORE:

READ MORE:

Those eligible have been contacted by the Insolvency Service about their right to a refund. So far, around 1,000 have claimed their money back, leaving some 4,000 still entitled to the cash.

The first wave of refund letters was sent out two months ago, with another batch due "in the coming days", reports .

Emails will also be sent to those due refunds. If you think you're owed a refund, you can email the Insolvency Service at dro.preorder@insolvency. gov.uk.

If your contact details have changed since you applied for the DRO, ensure you give both your old and new information. Should a charity or other organisation have paid for your DRO, remember to include their details as well.

Caroline Shanahan, a senior figure at the Personal Insolvency Team of the Insolvency Service, advised: "In some cases, people may have changed their email address or moved home, meaning we do not have their current details to contact them.

"Those people can still apply for a refund if they paid towards a debt relief order that was not submitted, they just need to get in touch and let us know."