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Carrington Dean

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(@hayls_69)
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Joined: 9 months ago
Posts: 2
Topic starter  

looking for some guidance please! My partner entered into a trust deed in 2016, during the annual reviews because he had been doing some overtime the monthly payments were increased and the trust deed was extended.

It is now due to end in January 2024. I have offered to pay the remainder of the trust deed off for my partner but on review of his paperwork (which I hadn't seen before) it appears that there is a creditor listed as being due £6,800. He had car finance with this creditor, and was still paying for the car after entering trust deed. He handed the car back in 2017 which settled the finance and wasn't due them anything. We have contacted the creditor who have also confirmed he is not and wasn't ever due them anything.  Carrington Dean are now saying that he is due this even after receiving confirmation from creditor that he isn't. This has obviously had an impact on the amount it looks like he is due. They have advised that 43% of his debt will be written off at the end of his TD however this isn't true as they are taking nearly £7k into account that wasn't ever due! Calculating what he has paid over the last 7 years and what he was due to creditors he has actually over paid and nothing written off. Just looking to see if anyone has any advice on how to proceed?


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 15 years ago
Posts: 4237
 

Hi Hayls_69

It's hard to know where to start with this.  It is worth saying that it if somebody's circumstances improve after entering a Protected Trust Deed then I'm afraid it is entirely possible for them to end up paying back more than they originally owed.  That's because there are the trustee's fees and outlays that have to be paid in addition to the debts (and interest) if there are sufficient funds available.

The issue with the car complicates things a little.  I have a few questions around that:

- what was discussed regarding the car prior to signing the trust deed?

- what type of agreement was the car finance (eg HP/fixed sum loan/conditional sale)?

 - was the ongoing payment for the car allowed for in your partner's income/expenditure  breakdown which determined how much he was asked to pay to the Trust Deed?

If the trustee made an error along the way in respect of how the car should be treated then it may be possible to complain about this and for your partner's contributions to be amended retrospectively so that they have less left to pay (or perhaps even get some money back).

Kevin

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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(@hayls_69)
New Member
Joined: 9 months ago
Posts: 2
Topic starter  

Hi, 

Thanks for the response.

it was agreed prior to signing TD that he would keep the car and continue the payments towards it. The car was a on lease via PCP, he handed the car back and settled the finance.

The monthly payment for the car was included in his expenditure to determine how much he paid monthly, he did make them aware when he handed the car back of this and his monthly outgoings then changed.

thanks

 


   
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Kevin Mapstone
(@kevin-mapstone)
Member Admin
Joined: 15 years ago
Posts: 4237
 

OK well that all sounds like how it should be.  As you say though, if the finance was settled then the lender wouldn't have a valid claim in the Trust Deed.  I think the best course of action would be for your partner to provide evidence that the car finance was settled to your trustee, who should then verify this and remove the debt from their list.

Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.


   
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