Hi dmcd66 and welcome.

I would have thought that your trustee would seek to recover this money from the credit union. You may wish to bypass your current adviser and write directly to your trustee for some clarification of the position.

The credit union is likely to seek a dividend from your trust deed, just like your other creditors.

Your monthly payment would not have been less if the credit union weren't a creditor of yours. The payment is based upon affordability rather than your overall debt level.

Why has your trust deed been extended?

HI Amy

During the period that the credit union were taking payment I couldn't afford to make a payment of £250 to the trust deed and £200 to the credit union. It was agreed at this time by my previous trust deed advisor that I would not start paying my trust deed until they got the payments stopped from the credit union. When this happened I would start paying my trust deed and trustee would recuperate the money paied to the credit untion from May to Novemeber 2011 (signed trust deed in May 2011).

I was advised by my new advisor that they would not be seeking this money. Instead, the period in which I wasn't paying the trust would now be extended to to take into account this period of non payment to the trust deed.

Agian I would advise that the credit union debt was part of the trust deed. The new advisor stated that the credit union requested a wage arrestment.

As I have previously stated there is no documentation for this. Surely if they were going to do a wage arrestment/deduction I would have been notified of this?

Further, given the fact the trust deed was in force, would they be allowed to carryout a wahe deduction/arrestment?

Hi again.

Something doesn't feel quite right about the current explanation, but it's always tough to be 100% sure without all of the facts.

I'd direct this personally to your trustee and make it very clear what you were previously advised.

Credit Unions often deduct directly from wages, but it doesn't fall under the category of a wage arrestment, which is a legal enforcement action which is only possible after a court decree.
The payments towards the loan should certainly have stopped and the credit union should have paid the sums taken back to your trustee.

Sounds to me like your trust deed is being extended for reasons which are entirely not your fault and I think you should question your trustee about it as trust deed assistant suggests. If you still get the same answer then you could consider making a formal complaint.

Kevin's correct. I know the Council Tax can accelarate the process for wage arrestment etc and bypass the normal process, however I am not ware of any powers the Credit Union wouild have to this effect.

This is something your trustee should have dealt with and had the deductions stopped. At the very least they should be looking to reclaim any money paid post trust deed signing.

Mark

Hi dmcd66,

I would tell your Trustee / Relationship Manager that they have to recover the funds paid to the credit union and use these towards the payments that you were unable to make at the start of your Trust Deed because of the earnings arrestment.

If the Trustee / Relationship Manager tells you they won't do this then ask them why and why they have allowed an unfair preference to one creditor over the general body of creditors.

You may wish to put the above request in writing as this tends to have someone more senior deal with an issue like this.

Thanks for all your help. I will get a letter sent off to the trustee asap

Hi dmcd66

Let us know how you get on.

As mentioned previously, you seem to be suffering for something your trustee should have dealt with.

Mark