Good and fair points Neverendingstory.

I think that there's three sides to this!

How about if you're a creditor. How would you feel about writing off debt for someone who subsequently receives a large lump sum that should have come to you?

It's not your fault as a former creditor that the trustee failed to do their job, or a client forgot or deliberately failed to make their trustee aware of a potential claim, or a creditor that refused to pay out initially later changed their mind (possibly under regulatory pressure).

This is probably one of those questions by which where you stand depends upon where you sit.

Hi TDA

If you are a creditor and the money is due to you, it should be paid to you. But a Trustee has, in my eyes, a duty of care to investigate the PPI during the time of the TD. Therefore if the Trust Deed has been discharged, and the creditor discovers that PPI has been paid to the customer, should they have some come back to the Trustee for not investigating properly.

As for deliberately failing to make their Trustee aware of any potential PPI, I thought that everyone in a TD was investigated for PPI, why that is in my brain I do not know! If that isn't the case and I was a Trustee I would investigate everyone! [:D]

But like you say, everyone will have a very differing opinion about this!

Have a great weekend.

You too Neverendingstory.

I should point out I'm playing devil's advocate to some extent here. It's a tough situation to be able to point out a single solution that's fair all around.

Here's a new development. I was discharged from my Trust Deed in 2013. PPI was claimed and included in the Trust Deed. Recently did PPI claim which was originally turned down and it was sucessful. So now the ex Trustee is considering going to the sheriff to be reinstated. There truly is no end to this.

Welcome to the forum MissPie.

We've heard quite a bit about this happening recently.

There certainly is an end to trust deeds in terms of being discharged and being able to move on from a previous debt problem. There certainly is also a trend however towards cases being re-opened to capture funds that should have been due to the creditors during a trust deed or sequestration.

I think the bigest issue is that people assume the whole process is starting again. However this is not the case.

When the Trustee seeks reappointment, then they are effectively asking the court to have them re appointed to allow them to legally deal with the cheques received from PPI and pay it to creditors. If they did not, then the Trustee cannot legally deal with the funds received.

This has no effect on the individual as they remain discharged and it is only the Trustee involved in the process. Despite concerns, this does not mean that the Trustee can seek other contributions or have an interest in lottery wins and scratch card wins etc.

Mark

Thank you for your replies. I had already read the thread you highlighted, what I was clumsily trying to say was that we were required to sign forms for Equity in Finance to claim on our behalf via our Trustee and they were unsucessful with RBS, which is a different situation that Pascal12 found himself in. Nevertheless, our former Trustee is taking legal advice re possible reappointment. [:(]

Hi MissPie.

I'd imagine that the logic behind this is that it's unfair on your creditors to lose out on this money because, previously, RBS wrongly refused a claim (if that's what happened).

This seems to have been a widespread problem - banks accused of PPI wrongs committing a further wrong by refusing legitimate claims.

Can someone please help, I recently claimed and was awarded a PPI complaint payment and was in a trust deed from 2005- 2010. I was informed that I was successfully discharged in 2010 and the company would also be discharged. It has transpired this trustee( having been notified from the bank) has claimed this payment. I can't find anything to state a trustee can in fact act this way after the deed has been completed successfully and I am going round in circles trying to get the correct information as the bank, trustee and financial ombudsman to ensure this is correct, also after reading other message boards and web pages( sorry this is all I can do, as I suffer from multiple sclerosis) they are saying if u have completed and discharged from a trust deed and subsequent monies received from a PPI award, must go the customer not the trust. Can someone please help?

Welcome to the forum Bert.

Pretty much everything that I know about this subject (which is a pretty new development) is summarised in the following article:

Link Updated 2020: https://www.trust-deed.co.uk/rbs-and-ppi-claims-after-trust-deeds.html

Thanks for this, I have read this but unfortunately no one seems to know how the legalities stands on this, if it's the case that the deed holder is liable for this then fine, but this practise seems to be hit and miss, which is grossly unfair dependent on which company who overseas the deed?? Also surely if the trustee is going to apply to a court to re-open a deed they should be notifying the deed holder of this action to give the deed holder the right of objection?? I have written to the complaints department of this company detailing my concerns, but I asked has anyone been successful, the reply was a firm NO

I think there probably is some unfairness Bert.

Some people will have been with firms that are trying to re-open cases, some with firms who will be considering do so in the future, and others with firms who may still be perfectly happy to forward the funds to their previous client.

There does seen to be a direction of travel here though. It does seem like this might well become the norm - not least because the relevant government agency (the AIB) is doing the exact same thing with sequestration cases.

There's also the question about what's fair for creditors as well.

Thanks for your help TDA, will keep u informed on how things progress,

I was made bankrupt in 2008, both myself and the trustee who was the AIB at the time were discharged 2009 . Estranged husband put a ppi claim this year through a claims company, I found out only because they were in joint names...He received his half even though he just completed an IVA. My cheque with my name on it was sent to AIB, when I got in touch with them they said, they were applying to sheriff to reinstate a trustee.. 6 months on and 2 court appearances later, last one on wed 30th Sept sheriff sisted the case. The cheque is now in AIB name they hold it, now I need expert advice as the case is complicated, "sheriffs words" where to go from here ....? Question tho... If you were to take out a loan today and took ppi, you paid the loan off . Would you get your ppi back...? After all you paid for it, therefore it's an ASSET .....!

I wonder how this will end up going for everyone, if my pip claim had been paid out when first claimed for instead of a couple of years later, through the bank themselves reinvestigating I would never have needed to go into a trust deed and all the stress that goes with it