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Scottish Trust Deed Forum
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Topic starter
06/02/2015 9:41 pm
Dear All
I had a trust from 2009 to July 2014 the trust was disx
charged July 14.At this point a letter from a ppi claimed money was available, i contracted my trustee and past the details to them. By Nov the bank had stil not paid out to the trust. I chased the bank and they paid the trust Dec 2014, coupled with the money i paid into the trust there is enough money available to pay all creditors in full and the trustees fees of 1k a year. There is a credit balance of almost 5k and the trust admin advised they are increasing fees and charging me 8% intrest and this will clear the credit balance. Can they charge intrest? Thought the whole point of a trust was to suspend intrest to enable you to pay off your creditors?Can fhey increase their charges? What or who can i refer to for help.
thanks Trish
06/02/2015 10:14 pm
Hi trish, I'm not an expert but I believe the creditors can charge interest when there is enough money to pay it. To my surprise, it was mentioned the other day on the forum that the creditors may even be able to request the contract rates as well. With regards to the fees, I don't think it would be fair for the trustee to charge more simply because he can. As such these can be audited (at cost) if you believe them to be unfair.
SkintAlly
06/02/2015 10:42 pm
Welcome to the forum Trish frustrated.
SkintAlly has answered your questions well.
The principle of a trust deed is that it only writes off the debt that you cannot afford to repay.
If enough money becomes available it doesn't seem unfair that the creditors receive some interest. This is what was agreed when the money was borrowed.
As for an increase in fees, this really needs to be justified in terms of extra work done. You can ask your trustee to provide you with that justification.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
