are you being asked to continue with your monthly contributions or have you just been told that your TD cannot close until they have reclaimed mis-sold PPI?

Was there any mis-sold PPI on the loan? Only you can decide if ppi was mis-sold or not,so dont be forced into allowing a 3rd party acting on your behalf via your trustee to put forward a false claim.

Paul

I have been unemployed for a year so no contributions have been made since then, they are using a 3rd party on my behalf, they are of course pursuing this for their own fee's i guess

Welcome to the trust deed forum dustybhoy.

Your Trustee is entitled to investigate whether PPI claims could be used to contribute funds into your trust deed. Some firms do, some firms don't. I do think it's unfortunate that something which potentially could have been done a long while ago is being started so late in the day.

If funds are reclaimed the money will go into your trust deed and be used to pay the fees/costs of your Trustee (as agreed by you, your Trustee and your creditors at the start of the process) and to pay a dividend to creditors if possible.

Any expected dividend to your creditors will probably have been reduced by you finding yourself to make the expected payments for a while. The PPI claims may help to correct this if they work.

If you have made no contributions for a year are you back making contributions now?

Paul

Hi dustybhoy

Are all contributions paid up to allow them to close?

If this was the case and you signed after April 2008, there is nothing to prevent them discharging you while they remain in office to sort out the PPI.

Mark

I got a letter from my trustee saying that unless I objected, they were going to pursue PPI claims. I told them that any PPI I had was entered into fully understanding the policy and therefore could not be argued as mis-sold. They had sent the letter giving me the option to object. While I think that it's fair for mis-sold PPI to be put back into the trust deed, I find it a bit difficult to understand the idea of the trustee possibly claiming a fee for this (more work undertaken), the contracted firm charging a fee and then the money goes back to the companies who were responsible in the first place. I'm not sure what a better way would be, possibly looking at this at the beginning of proceedings.

I agree that it could/should be done at the start of the process gillian.

It's an interesting point about the money going back to the creditors that were responsible for mis-selling in the first place.

Assuming not all of the creditors were mis-selling, succesful PPI claims should see creditors that did not mis-sell benefit at the expense of those that did. I think most people would think that's a good thing.