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Scottish Trust Deed Forum
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21/09/2015 1:59 pm
I started a Trust Deed in September 2010, and told it would last 60 months(5years)I get payed every 4 weeks and set a standing order to make contributions every 4 weeks. As my Trust Deed was due to end this month, so I contacted the company who are dealing with and was surprised to learn that I have already made 63 contributions and have 2 more to pay. I told them that on my Trust Deed paper which I have signed,, it clearly states that I was to make 60 payments, so why is it that I have to make another 5 payments which comes to £1,500. The person from the company said that I have to make 65 payments not 60. I told her that it clearly states in all the letters I received from then it says 60 monthly payments, she could not explain to me why an extra 5 payments have been included,, could you please advise. Thank you
21/09/2015 2:08 pm
Hi Jimbhoy64.
The only way to get a confirmed answer to this question will be to obtain it from your trustee I'm afraid. We don't know precisely what you agreed to and signed for in your proposals to your creditors.
It seems like you've been told two irreconcilable things:
1 - The trust deed would last for 60 months (which would be 65 four-weekly payments).
2 - The trust deed would last 60 payments (which would be around 4 years and 7 or 8 months of four-weekly payments made).
I suppose that the use of the phrase "60 monthly payments" in correspondence might be standard wording used because of the vast majority of clients will pay once each calendar month rather than every four weeks.
If you paid over your disposable income for 60 four-weekly periods you would not have paid over your disposable income for a full five year time period.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
22/09/2015 10:19 am
It does sound like it boils down to the difference between 4-weekly and monthly, Jimbhoy64. A trust deed would normally last for 4 years though, irrespective of whether the payments are monthly or 4-weekly.
It's a shame that this wasn't made clearer in the paperwork you were sent at the start though.
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