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Almost 4,000 people are still due a refund for debt relief order applications they paid for but did not submit
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The Insolvency Service has written to those due a refund and £65,000 has already been reimbursed since March
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Refunds worth a total of £500,000 are still available going back to 2016 for those who did not finish the application process
The Insolvency Service is trying to refund money to 4,000 people who made payments towards a debt relief order (DRO) but did not submit their application.
Before April 2024, a £90 fee was payable when making a DRO application.
Applicants could choose to pay in full or in instalments.
However, many thousands of people made a payment towards the fee, but did not submit their application.
The £90 fee was scrapped by the Government in April 2024 to make things easier for people with debts to access the help they need.
The Insolvency Service still has £500,000 to return to individuals who paid towards these incomplete applications, going back to 2016.
The agency has already written to 5,000 people due a refund, with around 1,000 responding and £65,000 being reimbursed since March so far.
Another letter is due to be sent out in the coming days.
Caroline Shanahan, senior leader in the Personal Insolvency Team at the Insolvency Service, said: “We sent letters to all 5,000 people who are due a refund, but many of them have not come back to us. There are still about 4,000 people who have not responded.
We want to return their money as soon as possible, but they need to contact us after receiving the letter.
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.
Applications for DROs are made through authorised intermediaries. Up until April 2024, payments were made by the individual as part of the application process, either in full or in instalments.
The Insolvency Service is keen to provide refunds directly to the individuals who made payments towards the application fee but did not complete their application for whatever reason.
If you are owed a refund
If you feel you are due a refund after making a payment but not submitting a debt relief order application, please contact [email protected]
To request payment into your bank account or building society, please include the following details:
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Debt Relief Order application number (if known)
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Your name
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Your address
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Your telephone number
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Bank/building society Name
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Account name (as shown on bank statement)
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Bank account number (full 8 numbers)
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Bank sort code (full 6 numbers)
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Building Society roll number (if applicable)
All applications will be fully verified against system inform to prevent fraudulent claims.
If you would like to request a cheque instead, please state this in your email.
If your contact details have changed since making the application, please include your previous name and address alongside your current details.
If payment was made by a charity or third party on your behalf, please provide the details of the organisation that made the payment.
You can also write to us, including the above information in your correspondence, at: The Insolvency Service DRO Team, C/O Met Office, Fitzroy Road, Exeter, EX1 3PB.
ENDS
Further information
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Letters were sent to individuals this week, dated May 2025.
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Any interested parties with further questions can call the Insolvency Service customer service helpline on 0300 678 0016. It is open Monday to Thursday from 9am to 5pm and on Fridays from 9am to 3pm
