Welcome to the forum charlene.

Knightsbridge are a familiar name in the industry and, as far as I'm aware, properly authorised to handle Scottish trust deeds.

If you prefer to work with a more local company there's no shortage of alternative firms that are based in Scotland. Most of them would be pleased to meet you in person and you'd have the reassurance of knowing that you're working with the firm that will actually be handling your case from the start.

I'd guess that Knightsbridge would pay Simple Financial Solutions for passing the work that they've done on your case over to them. This isn't uncommon within the industry.

We do advise people that are quoted terms of longer than 36 months to speak with another firm before signing up. The reason is that sometimes (and I'm not specifically suggesting that this is the case here) the reason why it's suggested that there should be a longer term is to fund higher than average fees for the trust deed provider. We've had no shortage of enquirers over the years that have found they could move to a much shorter three year trust deed with a different firm once they checked.

It might be good to have a chat with a different firm. It could either reassure you that the firm you're talking to already will be a good choice, or might open up the possibility of a shorter trust deed handled by a firm closer to home (if that's important to you).

Hi Charlene,

I have signed up with Knightsbridge and made my 1st payment this month. They have been great with me so far. 🙂

Hello thanks so much for the replies. Today another company called me about the life insurance that was included in the monthly payments to my creditors. Apparently if I have £140 left over every month after my outgoings then the full £140 has to go to my creditors. This company that called me said they were in partnership with simple financial solutions and that they would like to offer me life cover for £30 per month and instead of the £140 going to creditors only £110 would go to them and the other £30 goes to life insurance. The man was very cheeky and when I tried to explain I could get life insurance from as little as £6 per month he got very annoyed and Said we are trying to help you and give your creditors less and the rest makes up life insurance. Basically I'm very confused I do not know who is calling me there's now 3 different companies all calling and it's all getting very confusing. Knightsbridge, simple financial solutions and now this other place about this life insurance. What I want to know is if this all seems true or does it seem like to much I'm not very good with dealing with something like this. I just want one company to help me with a trust deed and that's it!! Help again please

Hi charlene.

We cannot give you advice on whether it would be a good idea to take out life insurance or not.

However, if you choose to you can buy it from wherever you like. Be sure it's set up in a way that any payout will go to your intended beneficiaries rather than your trust deed if the worst happens.

As you may have guessed by now, the sellers of life insurance receive very significant payments from the insurers that write the policies.

I wonder if a reduced payment might have something to do with a trust deed lasting 4 years rather than 3 years?

There's lots of firms you can contact so that you can compare their services. Most of them don't branch into this type of ancillary sale.

Thanks trust deed assistant. I was told by a person calling at my home from simple financial solutions that I would only have to pay 110 pounds a month "top end" yet after a call from a life insurance company who are in partnership with s.f.s. That I would have to pay 140 pounds per month, 30 pounds of which could either go to my life insurance or creditors I can't afford 140 pounds, should I change providers?.

You certainly shouldn't commit to a trust deed (or trust deed plus life insurance) that you don't believe you can afford. You'll be swapping one problem for another.

How much do you owe in total charlene?

Are you a car or home owner?

Near £7000 I can afford the 110 per month I'm just worried I am being scammed. I am not a home or car owner

Hi Charlene, I was offered the life insuarance or critical illness I think it was and told them I can get it through work for £6. They were ok with that and my payment amount didn't change. Don't sign anything until you are completely happy with the t&c's.

Mercy thanks very much for replying I just feel like they are being very pushy and as I've heard one person say my payments are £110 and another say £140 I'm do confused I will wait to see the papers from knightsbridge in the next few days to see if everything is as it seems and call simple financial solutions tomorrow and find out exactly what my payments are .

Hi Charlene I had the same issues as you at first. I was talking to a firm that were not in Scotland and had some strange complicating phone calls,they also said the TD would run for a few months longer than the usual 36!!! I was very confused and worried really I did not feel things were right. I got some very good advise from this forum and decided to contact one of the firms that help on here. Honestly the best thing I have done. If you have decided to ask for help with your problems then making the right choice is very important for peace of mind. Really glad I did.

Hi Charlene

I have to ask. In all of these discussions and phone calls, have any of the advisers mentioned the Debt Arrangement Scheme - aka DAS?

If you pay £110 per month over 48 months, then you'll have paid £5,280 towards your debts of £7,000. How is that 'writing off 90% of your debts'?

If you pay £140 per month over 48 months, you'll have paid £6,720 towards debts of £7,000. You'll have paid back well over 90% of your debts.

Personally, I would run a mile from any company which was taking that much money off me, while telling me that they were helping me to 'write off 90% of my debt'!

In your shoes I would speak to several other companies, plus the likes of CAB, just to see what options are really out there. I would also treat the insurance salesman in exactly the same way as I treat any other cold caller I would tell him I'm not interested and hang up.

But, that's just me [:)]

Hi Charlene.

Excellent points from candlewick as always.

It looks to me that you have three genuine options, all of which should have been explained to you in detail by the companies that you've been speaking with.

Debt Arrangement Scheme: You'd pay back what is deemed to be affordable until the debts are fully repaid. You'd be protected from legal action and interest. You'd avoid a formal insolvency. For example, at £120 per month a £7000 debt would be repaid in a little under five years on a DAS.

Trust Deed: You'd pay what is deemed to be affordable for the period that you agree to at the start. You'd be discharged when your obligations have been completed.

Sequestration (bankruptcy): You'd pay what is deemed to be affordable for a period of three years. After just one year you'd be discharged from the bankruptcy.

Were each of these options presented to you?

Hi Charlene,

Well done on taking steps to try and deal with your debts which for most people can be the hardest thing.

I think you need to take a step back from everything and digest the information that you have now been given by three separate companies. There is no rush to do anything.

Candlewick makes a very relevant point about your debt and the Debt Arrangement Scheme. A DAS pays back your debt in full and given the level of your debts it may be something you wish to consider but first you need to be aware of that option.

A good advisor should sit down with you and work through all of your options i.e. Trust Deed, Debt Arrangement Scheme and also Sequestration. They should also work through a very thorough income and expenditure and by doing this you will have a better understanding of all the options available to you and then you can pick the one that best suits your circumstances.

It will be Knightsbridge that set your monthly payment so I would suggest contacting them to ask what your payment will be. Simple Financial should have no control over this as it's not them who will be in charge of your Trust Deed. It's for this reason that I would always advise sitting down face to face the actual company and advisor that you will be dealing with for the next couple of years to discuss everything. That way you get a feeling for the advisor and also the company instead of doing things over the phone and by post.

The positive thing in all of this is that you have 3 options available to you to deal with your debts all of which can be very straight forward.

Hi Charlene

Personally I don't think any insolvency firm should be discussing and certainly not offering insurance at any stage in my opinion, but certainly not before matters are agreed.

DAS may well be an option looking at the figures by candlewick earlier in the post, although depending on circumstances, sequestration may also be an option. Do you have any assets of any value as this could determine the best option available? Whatever you decide, it should be the option which best suits your circumstances and certainly not what best suits the firm involved.

On the 90% statement, I suspect that once the fees and outlay are deducted, then creditors are likely to receive 10%!

If you can give a few more details of assets (if any) hopefully we can guide further.

Mark