Welcome to the forum Krnl20.

They key point is the date that you signed your trust deed. If your bank account is in credit then it's not an account that would play any part in your trust deed.

If it then goes overdrawn later, this would be a debt that you have incurred after your trust deed began. Your trust deed would not cover debts incurred after it began.

You might want to ask for a copy of the bank statement for that period so that you can assess whether the information they are presenting and relying upon is correct.

Pretty much every bank would retain a PPI payment if someone owed money to them. They'd use it to reduce the balance owed.

If the overdraft had been included in the Trust Deed, it would have just meant that the amount you would have paid to end the Trust deed early would have been higher. So whilst I can totally understand your frustration if you thought this debt had already been cleared, overall you shouldn't be any worse off.

Apparently the RBS are holding onto the cheque until a court case is concluded, if I still owed the debt of my overdraft why would they be waiting to see the outcome, I’m kinda confused by it all.

Hi Kevin that’s not really true the amount would not have been higher to have cleared trust deed ias what my trustee is stating is the RBS failed to make a claim when I was ending the trust deed early.

Hi Krnl20.

Firstly, regards the court case you mention. RBS has taken a position that it can hold on to PPI payments when they've had to write off a debt for the same individual previously when they've completed a trust deed. Other banks are refunding the PPI to former customers whose debts have been written off at the end of a trust deed. My guess is that they're referring to this.

Regarding Kevin's point, I think we're assuming that your debts were repaid in full by your trust deed which is why you were discharged earlier than the usual 4 year period?

If that's the case, then had that overdraft fallen into your trust deed you would have had to pay it off as well. If it doesn't fall into your trust deed, then it may still need to be paid off. The overall amount to be paid off doesn't change either way?

I can't reconcile the two positions though. If all the debt in the trust deed was paid in full, I can't see what the court case has to do with this. If there is still a debt to RBS, then they would seem to have no issue setting the PPI off against this debt without reference to the court case.

Hi TDA thanks for your reply...I don’t know if maybe im not explaining things properly. I paid my trust deed off fully I gave the trustee a cheque for full amount of my debt,interest & TD fees. The trustee wrote to all my creditors informing them of this they had either 2 or 3 weeks to reply I can’t remember the exact time scale both the RBS overdraft &Tesco credit card failed to claim any money back from me, after this period of time the debt should be wiped as it is not my responsibility that they did not claim within the time frame. I therefore got money back from my trustee. Thanks

Thank you.

Doesn't this take us back to the same place though?

If there was no overdraft when your trust deed was signed, RBS wouldn't submit a claim and you'd remain responsible for the repayment of a post trust deed debt.

Apologies if I'm missing something.

Hi TDA thanks for replying. When I signed TD I included my RBS overdraft in the debt. I signed the TD May 2016 the RBS are saying they were not aware of the TD till January 2017 the debt has now been passed to a debt recovery company.

Hi again.

I think we might be talking at slightly crossed purposes.

There's no act of including (or excluding) debts when you sign a trust deed.

Quite simply, and legally, any qualifying debt that you owed when that trust deed was signed was included.

If your current account was in credit on that date, it was not included (even if your trustee and you thought there was a debt so it was present on the debt list used at the time).

So if RBS are correct that your current account was in credit that day they cannot submit a claim and will quite fairly expect any debt incurred thereafter to be repaid directly by you.

This would also very clearly open the door for them to set off a PPI claim against what's owed, without any reference to the contentious legal case.

If I'm you, I'm asking for bank account records to check whether your account was in credit on the day you signed. If it was you'll need to directly repay any debt later incurred.

You don't lose out either way though, because you'd have repaid in it full via the trust deed previously anyhow.

Thanks TDA for your reply, ive requested my bank statements to find out if my account was in credit & your rigjtbeother way it would have to have been paid. At least if this is the case my PPI cheque can go towards clearing the debt.