Hi ebayking

It depends on the timing. If the money was due and you signed a Trust Deed (not an IVA I guess) then this will be a claim.

I assume the money was paid out, although this is unusual as they normally deduct the fees from source.

Mark

Hello ebayking,

Could you confirm a couple of things for me?

Am I right in thinking that your PPI claim was against a firm to whom you owe money that are included in your Trust Deed or IVA?

Am I also right in thinking that even though they accepted that this money should be repaid they in fact did not pay it out and used it to clear some of your outstanding debt to them?

When you started the claim had you already started the Trust Deed or IVA?

Hi all

Yeah the money was put towards outstanding amount of loan left to pay and i thought i smart would take a cut before this was done, I had already started my trust deed after the offer was made

Hi ebayking,

I don't think that the claims company ever had chance to take a cut because I don't think any transfer of money will have taken place. It seems likely that this is why they are chasing you.
Did they ask you whether you were in any kind of debt arrangement before taking on your claim?

For our Trust Deed experts:

1 - Is this particular creditor entitled to retain these funds for their own benefit rather than they be split amongst all creditors via the Trust Deed?

2 - What will happen with the new debt created to the claims company for a succesful claim (even though there was no payout)? It seems as though this debt was created after the Trust Deed was signed.

Hi all

the answers are:

1. No, the funds would require to be paid to the Trustee. If this was already paid, it could be challenged as an unfair preference.

2. It would be regarded as a contingent debt I suspect, a debt which had the potential to exist by previous agreement but unable to be quantified. A bit like a repossession, it exists but can't be quantified until after a sale.

Hope this makes sense.

Mark

If it is an IVA you are in you may be better seeking answers elsewhere ebayking, I wouldn't be confident of answering your questions. In terms of a trust deed, it all hinges on whether you instructed the company to do the reclaim on your behalf before or after entering into the trust deed.