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04/09/2023 2:54 pm
WOW it has been an absolute rollercoaster!
After 59 months of payments I've finally made the last one, initially signing up to a 4 year trust deed at £600 a month with a small extension of a couple of months for equity in my property, it's over!
My trust deed was extended for almost a year after a dispute with my Trustee, they initially rejected my claim that my expenditure had increased after having a child and my wife being on maternity leave which also reduced household income. They refused point blank to consider any of this.
Then after a period of time and perseverance on my part they agreed to reduce the payments to £300 a month just before I was put on furlough, I wrote to them several times to seek clarity on the term of the trust deed and if the reduction in payments would result in an extension or increased payments after furlough. Everything they replied with suggested no extension and no increased payments for that period, they even refunded be £900 as it took them 5 months to review my income and expenditure.
To cut a long story short as I was approaching the 48 month mark I wrote asking for clarity on how long it would be before receiving my form 5, they wrote back saying I still owed a considerable amount and my payments need to continue.
I raised a complaint initially with the trustee which was rejected and then the insolvency service, both rejected my complaint on grounds that as I has signed up to 48x£600 then this must be met. However they did acknowledge that the trustee failed in communication and they failed to adhere to the regular income and expenditure check detailed in legislation.
All the AIB guidance for trustees suggested they should consider changes in peoples circumstances, beware they are here to make money for themselves as well as creditors. This trusteed process is a money making machine for accountancy firms.
The forum has been a welcome relief at times and thanks to those that run it, some really useful information and support.
I'm just waiting on my form 5 now and then I'll wage war on my creditors who fail to update the right information on my credit files.
Stay positive and the end will come!
05/09/2023 1:43 pm
Thanks for telling us about your experiences with a Trust Deed, Andyb1202, and congratulations on completing the payments. I am glad you found the forum a useful support.
The outcome of your complaint surprises me to be honest, though it is hard to comment without knowing all of the details of your circumstances throughout the period. I would certainly agree with you that a Protected Trust Deed should be flexible and take account of any changes in circumstances that are beyond your control, which is indeed what the AIB's guidance says.
In the interests of balance, I would wish to make the point that not all insolvency firms operate in the same way and I am sure there are many trustees out there that would deal with your situation differently to how your own trustee did. As such, I think it would be unfair to tar all firms with the same brush - after all you only have experience with this one firm.
I guess the takeaway from your experiences for those thinking about entering a Trust Deed would be to be careful about which firm you choose to go with. Ask about how the trustee would deal with these types of situations and whether they would extend the term of the trust deed as a result of any changes in circumstances. Look for assurances about this kind of thing in writing and if you don't get satisfactory answers then go elsewhere.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
13/09/2023 7:42 am
Thanks Kevin
I agree to an extent, however with a framework for trustees to operate in place surely all trustees should be acting in a similar fashion, they shouldn't have the flexibility to make decisions based on personal views or opinions.
Either way I'm delighted to have received my form 5 and see the AIB records updated to reflect that.
I'm now just waiting for the credit file to improve and see the back of any records that show I had a trust deed
