I've never understood the delay in discharging due to PPI.

If the Trust Deed was signed post 2008, then there is a mechanism for discharging the individual, while the Trustee remains in office to sort out the PPI, pay dividends, finalise the case etc.

There was a suggestion in an earlier thread that they were not discharging the individual as the funds may be sent to the individual who would spend them! or the individual may have received the fund and failed to notify the Trustee. In both scenarios, are the Trustee's powers or options somehow restricted by discharging the person? I can't see how. If a person had made all contributions and dealt with equity etc and is entitled to discharge, then what options would a Trustee have against an individual who had benefited from the funds and not been discharged as opposed to one who had been discharged. Very little I guess.

It would be hard to argue that they had failed to meet the conditions of the Trustee and refuse discharge. They then may look to raise an action to recover the sums which vest in the Trustee. I don't think the Trustees position is weakened by their discharge. Aquirenda would not apply/fall as the funds vest in the Trustee and he is entitled to them.

Interesting. Or perhaps it's just a big long massive post that asks the questions, but doesn't really provide the answers.

Mark

its a strange conundrum though, this idea that pay day loans are bad for credit.

if you can afford to pay the 21-29% per month rate to them, then surely you demonstrate that you are now healthily placed for cash ?

clearly if you had an option to use a credit card, overdraft or high street bank loan then you would, but in order to get in a position to receive these preferential rates, you cant until you show clean credit activity.

you are left with little option but to use these companies for short term needs, and clearly this is their business model of course.

Hi twitcher.

Any lender forms their own view on who they do and do not want to lend to. One factor will be their experience of previous clients.

If they notice that their default rates are higher for people that have made use of payday loans in the past they may see this as a negative factor for them commercially.

You make a valid point about a payment record. Some lenders may agree. Another interpretation however is that payday loans are so extraordinarily expensive that people wouldn't choose to use them unless they were in a bit of bother.

Different lenders will see it in different ways.