Thousands yet to claim refunds after debt relief order fee scrapped

Thousands of people who paid a fee after starting a debt relief order (DRO) application are being offered refunds.

Before April 2024, people struggling with debt had to pay a £90 fee when making a DRO application.

But this fee was scrapped to make debt support more accessible.

However, many people who paid towards the fee before it was scrapped didn’t submit their application.

The Insolvency Service is now contacting these people to let them know they could be eligible for a refund.

Refunds still available for 4,000 people

So far, around 5,000 individuals have been contacted about refunds for DRO applications going back to 2016.

But only 1,000 people have replied so far.

“There are still about 4,000 people who have not responded,” said Caroline Shanahan of the Insolvency Service.

“We want to return their money as soon as possible, but they need to contact us after receiving the letter.”

Ms Shanahan stated that in some cases, people might not have got the letter because they’ve moved house or changed their email address.

“Those people can still apply for a refund if they paid towards a DRO that was not submitted,” she commented.

“They just need to get in touch and let us know.”

Since March, £65,000 has been refunded.

What to do if you’re owed a refund 

If you think you’re due a refund, get in touch with [email protected], or write to:

The Insolvency Service DRO Team
C/O Met Office
Fitzroy Road
Exeter
EX1 3PB

You can ask for the money to be paid straight into your bank account or building society or via cheque.

Just include the following details:  

• your name
• your address
• DRO application number (if known)
• your telephone number
• bank/building society name
• account name (as shown on bank statement)
• bank account number (full 8 numbers)
• bank sort code (full 6 numbers)
• building society roll number (if applicable) 

If your contact details have changed since you made the application, include your previous name and address along with your current details.

And if a charity or third party made a payment on your behalf, provide the details of this organisation.