Hi Headwire.

I'm really not sure that this is going to turn into a problem.

When did you sign your trust deed? When was it expected to end?

When was your original HP agreement due to end?

Hi Headwire,

It will really come down to what was agreed with your Trustee/creditors at the outset.

If it was the case that your car was worth less than £3,000 and on HP and you signed your Trust Deed after 15 November 2010 then the Trustee shouldn't have any interest in this.

It could be the case that within your Trust Deed proposal, your HP payments would finish prior to the end of your Trust Deed and you may be requested to increase your payments depending on your surplus income now.

Normally when a car is on HP, we would verify the value, obtain an outstanding balance on the finance agreement and if the value of the car is around the balance of the finance there are no issues. 9 times of out of 10 the balance outstanding on HP is more than the cars value. We would also verify the payments remaining on the HP in the event that the HP payments stop during the period of the Trust Deed. If that happens, a review would take place to see if an increase in the Trust Deed payments would be required.

I would give your Trustee a call but as TDA said, I really can't see this turning into a problem for you so try not to worry too much. Sometimes the hardest thing is picking up the phone to your Trustee when you think there might be a problem.

Let us know how you get on.

Taking account of the £3k rule, I'd be surprised iof there was any inmterest in the car. In addition, there was finance against this, so I'm not sure why they would register an interest.

Mark

Thank you for your quick and positive responses David and TDA. I signed my TD in march 2012 and its due to end July 2015. The HP was due to finish some time 2016. My new Trustee stated in a letter that they intend to value an interest in the car at the end of the TD but I'm confused with this as at the time the TD started it was valued under £3000 and I would still be paying for after completion of the TD. I now contribute towards the hp of my partners car, would this be counted as an asset? Also will I be penalised for not informing my trustee of the car being bought back?

Thanks for ur response as well mark just saw it after I posted back.

Hi Headwire.

It sounds like standard wording on the letter you received.

Obviously it's best to keep your trustee informed as and when things change. I still don't think there's going to be a problem, but you should bring them up to date.

You (or your partner) don't own a car that's on hire purchase, so in most instances it's irrelevant in terms of being an asset.

Thanks everyone for your replys. I will contact my trustee and see what they say. Will keep you posted.

Update to the issue with the car. I explained everything to my Trustee and was told that there is no issue with the car which is a huge weight off! Just shows its better to be upfront about any issues rather than just sitting worrying about them. 🙂

It really is Headwire.

Glad it worked out.

Communication is key to a smooth trust deed. Don't be afraid to call your case manager if you have any issues.

paul

Hi Headwire,

Glad it worked out ok. Make sure you get it in writing that there will be no issues!

As plasticdaft said communication really is key with your relationship manager / trustee. I can sometimes get calls and texts on my mobile at odd hours during the week or at the weekend from my clients with a random worry or question.

As Trust Deed Assistant said - standard wording on the letter causing unnecessary worry. Happy to hear that is all ok for you Headwire