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Scottish Trust Deed Forum
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Topic starter
05/12/2021 11:07 am
I entered a trust deed in around October 2019. My total debts were about £6000 give or take a couple hundred pounds. I had had a bit of a lean spell with income and done a quick search online about ways to manage debt etc. I ended up clicking on a website for a company and doing a quick estimation type thing. Within minutes I was on the phone to someone and being told all about the wonders of Trust Deeds. I was sold on the premise of not being chased by card companies etc and I was under the impression on the call that I could make overpayments at any time and pay off my trust deed early. I didn't know anything about the costs at this time. At no point in my call was I told abouot a DAS or anything similar, which is kinda what I thought I was getting. I maintain that I did not need a trust deed. I jut needed some breathing space for a wee bit while business got going.
My monthly payment is now triple what it was, I am living in rented accomodation and really want to buy a house with my girlfriend in the next year.
Financially, I'd say that the trust deed is hindering me. Just in terms of disposable income and not even the fact about how much my credit score is down. At the most I was only ever paying £150 a month to my creditors. Now I am paying £276 and I'm not entirely sure who is actually getting it. I fully believe that it would be more beneficial for me to be released from the trust deed and even if i had some charges from my creditors then I could catch up. I have paid Almost my full debt amount already. After Decembers payment I will have paid more than my full amount.
I really need advice, I brought this up with the company I am with last year and asked to hear the calls back. Apparently they didn't have them so I was on to plums.
Thanks in advance for any advice,
Anthony
Topic starter
05/12/2021 11:09 am
Just to add to the point I made, in terms of mortgages, how much of an impact will this have in the next year, given that my monthly payments would be less on a mortgage than renting?
05/12/2021 11:49 am
Welcome to the trust deed forum Anthony92.
£6,000 is a pretty low debt total for a trust deed to be a suitable debt solution. It certainly sounds like, from what you've written, that the Debt Arrangement Scheme should also have been explained and seriously considered.
There's been a peculiar situation for many years whereby firms that are not legally authorised to provide debt advice can operate to recommend and/or directly insolvency debt solutions, including trust deeds. Only debt advice firms that are fully authorised and regulated by the Financial Conduct Authority can provide full debt advice, including on non-insolvency debt solutions like the Debt Arrangement Scheme.
For anyone reading this thread and considering getting advice about starting a trust deed, please please please ensure that any firm you deal with is fully authorised by the FCA to provide debt advice. This is the single biggest step that you can take to avoid entering an inappropriate debt solution and all of the consequences that can be attached to that.
Your trust deed payment is based upon an affordability calculation, so it will increase if your financial situation improves. The good news is that you may be able to leave the trust deed early if/when the total amount that you have paid covers:
1 - Your full debt total at the start (£6,000)
2 - Interest on those debts
3 - Your trustee's fees (likely to be several thousand pounds)
You could contact your trustee to establish whether this is a realistic goal for you.
In terms of mortgages, we're unaware of any lender that will offer a mortgage to someone who is currently in a trust deed. We're aware of very few that will offer a mortgage to anyone until they've been discharged from their trust deed for a couple of years.
It sounds like you could make a case for being mis-sold the trust deed. Any initial complaint should go directly to your trustee. If you're unhappy with their response you can escalate the complaint to your trustee's regulatory professional body. You may also wish to raise your concerns with the Accountant in Bankruptcy who oversee trust deeds in Scotland. Your trustee will be expected to evidence that they have informed you about all relevant debt solutions before you signed your trust deed.
However, even if your case is succesful it will not necessarily mean that you are discharged from your trust deed early. This is a legally binding arrangement between you, your creditors, and your trustee. It isn't easily reversible I'm afraid. There again, if you're desperate to exit the trust deed there's probably little harm in trying if you feel strongly that you were mis-sold.
Sorry that much of this answer will not be what you were hoping to hear.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
05/12/2021 2:36 pm
Thank you for your reply,
The worst part for me is that I didn't even miss payments not were any of my accounts in defaults or arrears. It was just that when I cleared a bit off a card I used it again because I needed to.
I hate that I have this hanging over me as it is going to stop me progressing with my life really, when what I was led to believe was this was the best thing for me.
Hopefully I can find some sort of solution. It pains me to see such a large sum of money leave my bank every time I get paid and I don't feel any further forward for it.
Many thanks again.
06/12/2021 5:45 pm
You're welcome Anthony92.
If you decide to take this forwards it would be interesting to hear how you get on.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
