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Topic starter
26/10/2015 2:14 am
Hi
I am currently at month 35 of my trust deed. It was taken out in 2012 prior to the duration change.
I have paid into my trusts deed £9000plus and I had a ppi payment off £9113. This bring my total to just over £18000. I received a letter from my trustee saying I was being extended for 19months and my payment was increasing to £309 per month (even though my wages have dropped due to ill health they said my expenditure has decrease which it has due to wages decreasing) my debit is for £14676.98
in may of this year I was emailing the assistant in my trustee in regards to my ppi payment. She stated and I quote "The only way to finish a Trust Deed early is if you pay a settlement figure which would include repaying your debts in full, plus 8% statutory interest and Wilson Andrews costs and fees. The settlement figure on your case totals £16,020.79.
Even with the expected PPI refund you would still need to complete your contributions and repay your arrears and assets."
But now I am being told that £5000plus has been deducted for their fees leaving £13000plus for debit and all creditors will be paid in full and that I will be paying £18066 by end of the 19 month extension.
So in effect I will have paid £24000 approx. Surely this settlement figure is what I should be paying? Is this right?
I need advice on what to do I know all debit must be cleared in full but why the difference from the settlement figure and what I am being told now.
26/10/2015 11:58 am
Hi Gizmols32,
A Trust Deed is designed to write off the proportion of your debts that you are unable to repay. Within this, the Trustee's fee comes from the money that you repay and effectively comes from the pot you pay into for creditors. If in the event that during the period of the Trust Deed you are in a position to repay your full debts then the Trustee is required to do this and to also consider applying statutory interest and then their costs on top of this. This is to allow creditors to receive their full balance but also the interest that they were unable to receive due to the Trust Deed. The Trustee fee is then on top of this.
Setting aside the PPI money for a minute, did you agree to extend your Trust Deed to pay over the value of any assets such as equity in your property or within a motor vehicle? Can you tell us what the original agreement was in terms of payments and the timescale? i.e was it £200 per month for 36 months and that was it or was there an extension after this?
Regarding the PPI payment, do you know if the Trustee got the full £9,113 or did they have to pay a proportion of this to a PPI company as their fee? A lot of Trustees are using PPI claims companies to investigate PPI and if they are successful charge fees in the region of 30%. This could mean that the Trustee might have ingathered a smaller amount for creditors.
A good way of finding out exactly how much money you have paid in and how much has been ingathered into the pot for creditors is to ask the Trustee for a ÔÇ£Receipt and PaymentsÔÇØ breakdown.
Under your Trust Deed it sounds like because of the large PPI payment it could be enough to cover the debts plus interest plus the Trustees costs and this is what your Trustee is considering.
David is not currently posting in the Trust-Deed.co.uk forum
26/10/2015 12:20 pm
Did they give any reason for the 19-month extension, Gizmols32? What does the letter say exactly about this?
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
27/10/2015 11:35 am
Dear Gizmols32
My name is Steve and I am part of the team at Wilson Andrews. Thank you for the post. I am sorry that we clearly haven't communicated very well about this, and I apologise for the confusion and concern this has caused.
From the details in your post we have been able to identify you. I can see that you spoke to your Relationship Manager yesterday and they have sent you a detailed break down of our calculations on how much you have left to pay into your Trust Deed. They have also sent you the latest Income & Expenditure analysis we did with you so that you can see how we've arrived at the payment.
Please do let us know if you need any further details or clarification (or if there is anything that needs updating).
I hope this helps.
Steve
Ian Williams - a member of the team at Wilson Andrews
