Hi stu62.

I hope everyone was OK?

I'm a bit puzzled about the finance comment. Secured debts wouldn't usually be included in a trust deed.

I'd suggest you check this, and the wider point about what will happen with the insurance payout, with your trustee ASAP.

Your trust deed doesn't end until all obligations have been completed, including contributions towards equity (which itself is an obligation in this instance).

Hi, thanks, luckily I'm fine I was fortunate that I was not going very fast when someone turned right into my path.
However, I'm confused about the car finance. I checked my paperwork from over 3 years ago and can see that the total finance for the car was included in the list of outstanding debts assessed by the trustee. The lender stopped pursuing just after the TD start date and I have made no payments since then at all. Have I wrongly assumed that the car finance was not part of the total debt my trust deed protects? The trustee also states that they have not included the car as an asset and did not include it as equity against my debt, but they insisted in me keeping them informed of my upkeep of the car and if I sell it (which I wouldn't have anyway)
But yes, I'm checking with my trustee tomorrow, I reckon the accident cost me my car and any chance of a replacement.
I'll let you know how I get on.

Hi Stu62,

I'm sorry to hear of the crash and I'm glad that everyone is ok.

Your Trustee would have checked the type of finance at the start of your Trust Deed and if it was unsecured then this would have been included in the Trust Deed. They would probably have carried out a HPI check and looked at a copy of the finance agreement.

One of my team members in work bought a vehicle recently and when he was trading it in the car garage said he had finance outstanding against it. He was positive that the finance was by way of an unsecured loan and had the loan company fax the car garage confirmation that the loan was not secured against the car and that cleared the matter up.

I think that the loan/finance company could have a marker against the car if a HPI check is carried out. This doesn't mean that the finance is secured. You can give the loan company a call and ask them for a fax/letter confirming that the loan is not secured against the vehicle.

In situations like this, we would allow the client to retain the insurance payout to purchase a new vehicle on the basis that the funds were used for that purpose. We would request paperwork confirming the amount of the payout and a purchase invoice for a new car.

Have you suffered any injuries as a result of the accident? If you were to receive compensation as a result of any injuries etc then your Trustee could have a claim over this.

Like TDA has advised, your Trust Deed isn't fully completed until you have paid all of your agreed payments which includes the payments for the equity. Your Trust Deed will end only when all of this has been paid over and you have received your Form 5 discharge certificate.

You should contact your Trustee and let them know what is going on and seek their advice on the matter.

Thanks David, I can confirm what you said was exactly the way it panned out. My trustee informed me this morning that the finance was a loan and not HP (I WAS sure of that but not 100%), she contacted Black Horse and they confirmed the same (seems it depends on the experience of the call handler)I then contacted the third party insurer and they confirmed by reply that the cheque should be released to me based on the new information. Note: The insurer checks with Experian in order to assess in full if there is still finance outstanding....I know how wide of the mark the credit agencies can be and also the time it can take to amend their records..however I was told it should take just a few days to get all confirmations and the sum paid across. And just for reference -
1. I am required to ensure the money goes towards a new motor vehicle only.
2. I am required to provide evidence of the payout (photocopy of cheque)
3. I am required to provide a bill of sale (receipt)
4. If the car is a lesser value than the payout I need to pass the balance over to my trustee
5. If I wanted to (and this would be by way of help from a family member) I could purchase a car of greater value and the trustee would have no objections, however, they will have an interest if the amount is over £3000

I never claimed any injury compensation as I was totally unhurt...testament to the safety rating of my now demised Renault Megane!
Many thanks for your help on this forum, again, a great place to find assistance for those in a TD.

That's all good news stu62.

I'm glad that you will not have lost out as a result of this accident.

Hi stu62,

A sensible and practical approach by all parties involved which is good.

Probably best purchasing a new car worth less than £3,000 to avoid any complications for your Trust Deed. You can pick up some nice reliable cars for under £3,000 nowadays if you shop around.