Fingers crossed for you eve1064. The vast majority of trust deeds do achieve protected status and I can see no reason from the figures you give here as to why yours should be any different.

Your point about irresponsible lending may be a good one, but I don't think it would be something that your trustee could use to change their minds if they did object.

Hi eve1064,

My fingers are crossed for you as well.

If you read the interviews with the experts (on the left hand menu) you may take some reassurance from the very high protection rates that they and their firms achieve for their clients.

Please let us know when you hear some news.

Hi eve64

Kevin is correct. If you've not heard anything by now, I guess it went through no problem and hopefully this will be the start of the recovery period.

Keep us posted and I hope it all works out.

Mark

Thank you both so much for your quick response.Do you know when I am likely to hear if its become protected.Is it normal practice to be sent a letter or a phone call.I am bit scared to phone them incase its bad news.

Hi eve64

Hi everyone.

I'm sure if it was bad news they would call to advise, judging from other posts. I would think it is best to call an have this confirmed. It would drive me mad not knowing

As stated previously, the vast majority seem go through no problem. Hopefully mine will be okay if I take the plunge!

Cat

Hi all

I've been reading the posts and think the site is excellent. I wonder if someone could help me.

I contacted talkmoneyscotland in November and they ran through the different options and said a Trust Deed was probably best. I was asked to pay ?ú600 to start things off. I told them obviously I couldn't afford this as I was calling about a debt problem in the 1st place and was told to stick this on my credit card as this would get included in the Trust Deed, which I did.

I am now really panicing that I may have done something wrong and I've read through some of the posts and am really worried. I need to move forward, but don't want to be seen a defrauding someone. I really want to move forward, but wonder if annyone else has a similar problem.

Cat

Hi,I havent paid any money as yet and not been asked to either.I have set a standing order up starting the 20th February which I was advised to do with the company I am with which is Grant Thornton.I have only good things to say about them,they have been extremly helpful throughout the proccess and hope this continues.They paid for the valuation of my house which is probably included in their fees.But this has helped as no surplus money to pay for this as wouldnt be in this position if there was I suppose.

Hi Cat

this seems to be a recurring problem where people are asked to pay money up front, sometimes ?ú1000+ and then they are passed on to the IP, when they could have approached the IP firm direct at no cost.

I think being advised to put the fee on your credit card is a real problem for the firm, not you personally and I would have real real concerns on any firm advising this.

Did they pass you to an Insolvency firm and can I ask who it was?

Mark

Hi Mark

thanks for getting back to me. They referred me on to invocas who ran through the trust deed briefly. They did not mention the money i paid to the other place, even though I mentioned it.

Cat

Hello catoneil and welcome to the forum.

I agree with Mark; you have followed the advice of a firm who state on their website that they are "The Trust Deed Experts in Scotland". Responsibility for the charging of upfront payments on a credit card seems to me to lay with them.

The issue of charging on credit cards for this service raises many issues. Someone we know (albeit under English/Welsh legal jurisdiction) took legal advice from a barrister about the legality of taking such upfront credit card payments where it was apparent to the firm collecting the payment that the cardholder is insolvent. The advice came back that it was probably legal because it was paying for a service connected to resolving the debt concern.

So legal perhaps... but ethical? A lot of people will take the view that a firm (engaged in helping people out of debt), which has just analysed a person's financial affairs and discovered that they appear to be insolvent, should not encourage them to take on further credit.

This concern is magnified further when you consider that there is no need to pay such upfront charges at all. By approaching an appropriate Trust Deed firm directly no such upfront fees would be charged.

As such many observers consider this practice to be at least a little bit dubious.

Hi eve1064,

I think catoneil is right that should should gather together the courage to call them. I'm sure knowing where you stand will be better than waiting nervously for news.

Hi both

I agree, although the comment that the credit card payment will be included in the trust deed would negate any defence to their actions.

I am aware historically of 2 IP's who had their licences suspended for something similar.

Mark

Mark

Which would suggest that the regulators of Insolvency Practitioners in Scotland may have adopted a more rigourous view about this activity than the Office of Fair Trading who supervise agents (who take upfront payments on credit cards) via their consumer credit licences.

This then raises another interesting point. When I seach the OFT's consumer credit register it does not bring up any results for one of the agents we hear about (charging upfront credit card payments) based upon their organisation or trading name. There may be a very good reason for this that I have missed. Or they may be not be licenced.