Do you know if your trustee has been discharged?

No, I only received my Form 5 a few weeks ago

Ok. Can't say for certain but I'd imagine your trustee will take an interest in these funds as they are not yet discharged.

I contacted the bank and they were not interested in the TD and asked if I wanted this paid into my account or send me a cheque. This money should have been paid to me before I even entered into the TD so it's a bit annoying. I also signed paperwork when I first entered the TD for them to do PPI checks on the debts I had. Is there a national database that can be checked by them to see what PPI I have received. Better not spend it in the meantime 🙂

Have you received the funds?

Hi nellie,

I'm sorry to say that banks usually do an insolvency check prior to releasing the funds - this seems to be one of the very last things they do. This is necessary because if they make a mistake they might end up having to pay out twice.

If your trustee isn't yet discharged, which is very likely if your discharge is recent, the funds will be sent to them and they'll use them to help repay more to your creditors.

Hi nellie,

Well done on successfully completing your Trust Deed and receiving your Form 5 discharge. I'm sure it's a great feeling to have reached this point and become debt free.

As others have said if your Trustee isn't discharged then they will have a claim over these funds. Is the PPI claim joint with anyone i.e. a partner? I have had it recently whereby a cheque was sent to one of my clients directly by the bank and the client banked the cheque, split this 50-50 as his wife wasn't in a Trust Deed and forwarded me the cheque along with confirmation of the total sum they received.

I can understand your frustrations regarding the PPI funds. There is the old question about if PPI funds were paid out prior to a Trust Deed would a client still have required a Trust Deed to clear their debts. That's the benefit of hindsight but at the time I think entering into a Trust Deed can be an effective solution to help ease the pressure and provide a way out.

I would contact your Trustee and explain that you have been notified about a possible PPI payment and ask what will happen. As advised the funds will probably be ingathered into the Trust Deed.

Thank you all for your replies, I Have contacted the bank this morning, they have said they will not pay this to a third party, I explained my TD and the lady advised as I was not owing anything to this bank the money would go back into my account- same account I have had for over 20 years. I did not ask for the PPI to be reopened, she explained the bank have been heavily fined for misleading on old claims and were 'obliged' to reopen old cases. they are now paying PPI on loans I had 15 years ago and completely forgotten about. Most of it appears to be interest charges . Some of the loans were in joint names so I will now have to investigate which ones. My ex husband is not involved in my TD so is he entitled to his share? It's all very messy, I was so happy to get my Form 5, slightly disappointed that at the time of agreeing my TD this was never explained and why during 3 years have they not already tried to claim any PPI ?

Hi nellie,

It would be quite common for a trustee to allow a joint party to an account (who isn't in a trust deed) to retain 50% of a PPI payment.

They're probably looking into claiming the PPI now - prior to their own discharge. This is work they can do after discharging you.

The alternative (which used to happen) is that customers could not be discharged until all work on PPI had been completed. This could take months or years - so the current situation seems to be much better from a client perspective.

Hi TDA,

Thank you for your reply, its a bit naughty that the TD company do not make it clear that it it's not all done and dusted within the timescales they quote, I was due £22k to debtors due to a very bad business decision, I have paid back £18k over 3 years and the amount of PPI I have been awarded is £9k , this takes me actually paying more than my actual debts, I appreciate the TD will have their fees. Can I ask for a breakdown of what they are actually doing with the monies received.

Yes nellie.

That's an entirely reasonable thing to ask for (and to receive).