That's certainly a new one on me.

I think this is something only your trustee will be able to clarify.

Mark

Hi mark thanx for the reply. My head is spinning once again entered into protected td in sep 2011 total debt just under £26000 paid £12000 re one half of house sale have paid around £6000 in monthly payments should have been £9000 but redundancy reduced this I then inherited a property from a relative but was staying in the property at the time I was told that I wuld either have to get some sort of loan to pay td off if I wanted to keep the house or sell it to pay td I then decided to sell property and was told by my trustee that I wuld have to sign a mandate transferring 25000 to him to pay off creditors etc I was told that the balance of my td was just over £20000 I queried why it had to be this amount and was told it was just in case anything else came up I have now received a letter from tdstating that he is now wanting 10% of the 25000 transferred to him for the creditors so do far I have paid 12000 from house sale approx 6000 in monthly payments and 25000 from 2nd house sale giving a grand total of £43000 which they are going up give me back just under £1000 it states in the letter that my discharge was recorded on 10th June 2014 in the letter it states that and I quote I also request approval of the asset realisation fee of £2500 being 10% of the additional funds recovered . I feel that I have been lied to and cheated here as I know that the debt needs to be paid in full plus interest plus td fees can you shed any light on this thank you again if u need any more info or if I have missed anything out plz feel free to post

Hi readytoscream.

I suspect that this is extra fees for doing extra work that wasn't anticipated at the start of your trust deed. In principle that concept doesn't seem unfair.

Whether the actual amount of extra work required justifies this sum of money I obviously have no idea.

You could ask for a breakdown of the time costs and associated expenses.

I should have explained further. Extra work in terms of the inheritance and subsequent property sale I'd assume.

Thanx for that but the letter states that the trustee is asking the creditors if it's ok for him to take 10% of the £25000 when the creditors are already getting 100p in the pound and the trustee gave the go ahead for the house to be sold privately with lawyers so apart from signing a form to say he agreed to the house sale can u tell me what work he wuld have done to justify another £2500 I had received a letter previous to that saying that I wuld need to pay just over £20000 to finish my td Thanx

I think the "asking the creditors" is just the usual process where there are extra fees. Mark, Kevin or David should be able to confirm that in due course.

I've no idea how your trustee would justify the figure, which is why I'm suggesting that you might want to ask him to do so in order that you can judge the reasonableness or otherwise of this.

Hi readytoscream,

I'm sorry to hear that you are feeling as though you have been lied to and cheated under the Trust Deed.

For a Trustee to take any fee from a case they need to write to creditors requesting this and seeking their approval. It sounds like this is what your Trustee is doing.

Your Trustees fee will have been based on an hourly rate which would have been charged to you case for the work involved from start to finish. As TDA has advised you would need to contact your Trustee and ask for a breakdown of their fee, the work involved in your case and specifically what this £2,500 asset realisation fee is.

It's a little bit of a trick one for us to advise on without knowing specifics of the case.

Let us know how you get on when you speak with your Trustee.

Thanx yes I understand that u have to pay trustee fees and it was originally approx £7500 for the fees I was asked to sign a mandate to agree to transfer £25000 from my second house sale whilst I have an email stating that I only owed just over £20000 this 2500 the trustee is asking the creditors for approval of is my surplus money that I transferred to the trustee. If I had transferred 21000 that should have been enough to clear my td with creditors getting 100p in the pound and 8% interest and the trustee fees of £7500 I just don't get how it is legal for him to ask creditors when it is not there money That's what I can't understand thanx

I think that's how it works because cases repaying 100p in the pound are comparatively rare readytoscream.

In most other instances the fees the trustee was drawing would effectively be money from creditors - so it seems like the process your trustee has to follow has been set up to suit the majority rather than the exceptions.

As I wrote before, charging something for extra unforeseen work doesn't seem unfair. Of course, extra charges should be proportionate to the extra work done which is what you'll want to check.

The initial £7,500 of fees that you agreed to sounds pretty high even without this extra sum on top.

Thanks for the reply I am going to fone them tomorrow and find out how they can justify this I will let u know how I get on cheers

Hi sorry it's been a couple of weeks I have spoken to an administrator regarding the extra charge of £2500 and have been told that as a goodwill gesture the trustee will reduce the fees by £400 to £2100 and this is only if I accept this and don't involve the aib or he will be looking for full amount mmm sounds fishy to me !!! I have sent an email today requesting the full £2500 to be returned to myself plus the £900+ I was due to get back as I have saught advice on this as I feel ripped off as this fee has only been added after discharge I will let u know when they get back to me cheers

Good luck readytoscream.

As written here previously, it doesn't seem unreasonable that additional fees are charged for additional unforeseen work.

Hopefully you'll find a compromise that works for all parties.