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Scottish Trust Deed Forum
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Topic starter
28/09/2011 10:20 am
Just a question about cars in a td. My husbands equity in his car had to be released or sold, we decided we would rather keep the car and they estimated the worth at £6500 of which there is still £5100 outstanding. The trust deed will have to be extended to pay the quity in the car or sold but we don't have the same car (they know this)and the car is now worth much less than that anyway, valued at £2700 so they have decided there would be no point selling it as they would need to give my husband some back to buy another vehicle so they would be left with virtually nothing anyway so they will extend the td instead. The point I was looking to clear up though was that surely it's unfair to allow people to keep cars that are worth £3000 or less for work ect but if your car is valued at more then you have to pay back the full equity if you dont sell it? Surely it's fairer to say the equity left is £5100 but as you get to keep cars up to £3000 then you owe the difference, £2100? I hope that makes some kind of sense!! I just feel a bit aggreived that hewill have to make 2yrs more payments but if we had sold the car then he would only have £2100 extra to pay so more than doubling the extension needed.
28/09/2011 10:59 am
Hi gillianr2.
I do see how this could be perceived as being unfair.
However I think the introduction of this £3000 threshold was, on balance, a good thing as it helps people to know where they stand right from the start. The same applies to setting an equity figure for a car right at the start of a trust deed.
I wonder how the firms that our experts represent would handle this scenario?
If a client has a £5000 car would they be expected to pay over £2000 or £5000 in lieu of the asset if they wished to keep the vehicle while entering a trust deed?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
28/09/2011 1:14 pm
Oh I think it's a really good idea too, just wish it was worked out a bit fairer on those whose cars that are worth more than the £3k - just seems mad to me that someone who's car is worth say £4k would either have to sell it or pay back the full £4k but someone who's car is £3k is allowed to keep it and have it not brought into the trust deed at all.
28/09/2011 1:20 pm
I do see what you mean gillianr2.
I'm wondering if what you describe is standard practice with all trust deed firms or some look to the value in excess of £3000 only.
I'm hoping Mark, Kevin or Shona could let us know their thoughts when they next get chance to check in to the forum.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
28/09/2011 1:26 pm
Yeah it would be really interesting to know. We don't totally regret the trust deed but we do completely regret the firm he went with as they seem to be very rigid and unwilling to work with us on anything so far. I had a trust deed years ago through what is now Peter Dean and they were excellent but my husband wanted to go for a das to begin with and then changed his mind to trust deed but by this point he had already been taken on by this firm and we so wish he had said no to them and went with someone else as the personwho came to the house was excellent and helpful but then he got shifted on to this other person and she has been a nightmare to deal with, you can never get a hold of her and whenyou do she always has to check before givingyou an answer but that means you then have to chase her for weeks to come back to you and eventually it never goes our way anyway. I think it's a real shame once you are tied to the trust deed then you are stuck with the trustee regardless of whether you are happy with them or not.
28/09/2011 3:04 pm
Our firm would only look for the surplus value over the £3000 threshold, not the whole lot - assuming the car is reasonably required (eg for work etc).
Would it not be possible to sell the car at the end of the 3 years, get your husband discharged from the trust deed and then get whatever runaround you can afford?
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
28/09/2011 3:10 pm
Hi Kevin.
That's really interesting. Thanks for sharing the information.
I think in gillianr2's case the more expensive car was subsequently disposed of so the amount required relates to the car that was owned upon commencement of the trust deed.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
28/09/2011 3:48 pm
We sold the other car during the trust deed for a bigger car, no money was made out of it and the trustee knows about it but the car is now only values at £2700 and the trustee valued our old car £6500 at teh start of the trust deed and said the full amount would have to be realised by the end of the trust deed. I was making payments for it but I had to give up work with ill health so they suspended my payments and are now saying that the trust deed will need to be extended to gather the remaining £5100 still due. At the time our option was to sell the car and buy another ourselves but we didn't have the money to get another car let alone one that could accomodate young children. My husbands work is out in the middle of nowhere and there are no buses or public transport to get there so he needs the car.I was suprised at the time that they expected the full amount of equity in the car and wouldn't deduct anything for another car.
