Hi Diane

Before the changes in November 2013, trustees and their staff charged on a time cost basis and all fees require to be agreed by the creditors annually.

It is extremely unusual in my experience for all sums received to be taken in fees as the vast majority of firms pay a dividend to creditors. I'm not sure of the figures involved, however creditors in addition to yourself can object to fees and have these audited by the Accountant in bankruptcy.

Interestingly the AIB charge 5% for their audit which the trustee would require to pay if there were no funds left.

Are you at the end of the Trust Deed.

Mark

Hi Clio2305,

When you say your payments covered all of your debts, can you advise how much debt you had and what you paid per month to your Trust Deed?

If your Trustee is able to they need to consider paying interest on top of your debts. This can increase the amount you pay back and therefore any PPI money may need to be kept in the Trust Deed.

Do you know how much PPI money they kept?

Hi Mark

The Trust Deed finished on 27th October 2013. I paid roughly £8366 in contributions to the TD. They have told me that they are paying £600 to my creditors. I have received again roughly £13792 in PPI refund payments. They have told me they are giving me £799 back as this is all I am entitled too as the rest has to be used in fees. I was told that the fees were sitting at £9000, 10 days ago. Unfortunately I have nothing in writing.

Diane

Hi David

When I joined the Trusted Deed in November 2010. I owed £9500. I paid £200 per month for the first 14 months. I then paid £254 for the remaining 22 months, which comes to £8366. They told me that they are paying back £6000 to my creditors.

I was under the impression that the interest should be 8%.

I received £13,792 roughly in PPI refunds.

Diane

Hi Diane

By my reckoning, total funds ingathered £22,158. Total fees and outlays £16,158. Even allowing for the fee for the PPI company and normal outlays, thats a helluva fee!

Mark

I'm a little confused on this one.

I cannot see how less than the full amount owed is being repaid to the creditors, but Clio2305 is also receiving some of the funds back.

Surely that refund would only happen where the creditors had been fully repaid (plus interest)?

Hi TDA

Yes, me too. The only time we would pay anything back outwith full repayment would be if there was a tax liability to part of the PPI as the individual would be liable for that and the PPI funds would be used to cover that liability. If that makes sense!

Mark

It might be worth digging into this a little Clio2305.

As presented it's not quite clear why the numbers are as you have explained. There may well be a perfectly sensible explanation.

It's probably wise to ask the Trustee for a full accounting.

If you ask for a copy of the Receipts & Payments, this should give you a detailed breakdown.

Mark