Notifications
Clear all
Topic starter
01/10/2011 1:45 pm
Hi,
I've a Trust Deed set up with KPMG since September 2010, and have just received a copy of a letter they've sent out to the creditors stating that as I'd fallen short on the payments made for the year, they would be levying a £2500 admin fee. I don't fully understand the remainder of the letter but it looks it's asking the creditors if they accept this increase, or if they wish to refer me to the accountant in Bankruptcy to challenge this.
This, on the face of it seems deeply worrying, though I'm not sure if this is exactly the correct interpretation of the letter.
But my main concern is that I did not cause this state of affairs - with the missed payments - to come about, KPMG did. To explain, when the Trust Deed was set up, I was ready to start making the monthly payments but nothing was taken from account by KPMG. So October through to December I made at least 3 calls to KPMG to try to get the payments started but nothing was done. Eventually the lady I spoke to saw that my account had been 'zeroed' out (if I remember correctly, that was how she termed it), so their system wasn't set up to request payments from my account. Anyway, this was changed and my payments eventually started in January this year.
So my questions are...
a) can someone help me with the interpretation of this letter? Is this giving the creditors the choice if they want to take Bankruptcy proceedings against me now, in light of the fees increase by KPMG?
and...
b) how can this situation be corrected, with the additional fee & threat of bankruptcy withdrawn, given that KPMG have caused this problem, and not me.
I should add that I've always been willing to make the 36 monthly payments, so I'm not trying to get out of anything here.
Thanks in advance for your advice on this
K
01/10/2011 6:20 pm
Welcome to the trust deed forum kasee.
I don't think you have anything to worry about.
It looks like the trust deed company are informing your creditors that they intend to increase the fees they are charging.
If the creditors don't like that they can contact the AIB, but you remain protected by the trust deed provided you keep up with your responsibilities to it.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
01/10/2011 9:34 pm
Hi, thanks for the quick reply.
My worry is though that KPMG have blamed me for the missed payments, whereas in actuality they caused this to happen, and then used this as an excuse to levy an additional fee. Wouldn't my missing payments, as they've portrayed it to the creditors, constitute a breach of my responsibilities, so potentially compromising the Trust Deed?
01/10/2011 9:49 pm
Hi kasee.
I think if they were taking issue with you they would have written to you rather than your creditors.
I presume the creditor letter is the only letter that is worrying you?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
01/10/2011 10:12 pm
Yep, the letter is a worry....both because I'm not sure if KPMG are asking the creditors if they want to continue with the Trust Deed, because of the missed payments, or start bankruptcy proceedings against me, and also that they've used their wrong interpretation of events to hike their own fee, which must surely cause the credits to want to question the value of continuing with the Trust Deed?
I'll be speaking to them on Monday about it to try to clarify things, but I just don't need a letter like like on top of everything else at the moment, especially when I've done nothing wrong, kept to my side of the agreement, even having pointed out to them that there was a problem with the payments not being taken in the first place. I just wish they wouldn't go firing off letters with what look like potentially serious consequences for me without checking their facts first.
Thanks for you comments on this so far by the way...
Topic starter
01/10/2011 10:20 pm
Sorry TDA, slightly misread your question....yes, the letter is the only one. Nor is it, as I say, directed to me, but is a copy of that which has been sent to the creditors.
01/10/2011 10:58 pm
Hi again kasee.
Your creditors cannot do anything to you, your protected trust deed ensures that.
It's hard to understand why it's been concluded that your creditors should bear £2500 more in fees, but it's really not your problem. If your creditors object to that it's between them and your Trustee only.
I know you're worried about the letter, but I really think you need not be.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
Topic starter
01/10/2011 11:07 pm
OK, thanks for the reassurance TDA, that helps...
02/10/2011 8:19 pm
Just to reassure you further, I agree with trust deed assistant. Your trustee isn't seeking creditors' opinion as to whether you should be sequestrated, merely whether they can increase their fee.
The rights and wrongs of whether this is a legitimate reason for increasing their fees is another matter.
Scottish Debt Solutions Expert - Ask me for help setting up a Scottish Trust Deed or Debt Arrangement Scheme plan.
02/10/2011 10:12 pm
Just out of interest Kasee, I wonder if you would let me know how you got on otherwise with KPMG. I ask because my sister has a Trust Deed with them and she is being very uncooperative. Did they insist on regular review meetings? If so, did they indicate what would happen if you refused to go?
24/10/2012 9:17 pm
Yes Kasee, its just sounds like to me that Kpmg are just letting ur creditors know that there has been missed payments, (although they are not advising it was there fault) and they are hiking up their fees another £2500, which reduces monies to the creditors, this will only effect u if u come into money, ie the lottery or an insurance policy matures. I think to be quite honest if it was their mistake they are very wrong in hiking up the fees, why should they, it was their error. As i said i dont think this will effect you, but bear in mind if u have a sudden windfall it will be u who will have to pay this out of ur windfall. I'd be tempted to remind them it was there mistake & therefore tell them they have no right to hike up there fees, cause its not honest wat they are doing, i'm only advising this if u come into a sudden windfall, u would'nt want them to get another £2.5 k out of ur pocket, so y take it from ur creditors.
25/10/2012 2:07 pm
I thought that it was the detors responsibility to set up a SO to send payments to the Trustee and not a DD? at least it was in my case. The first payment date and method of payment was made crystal clear in my case, I am wondering if there is an inconsitency in the IP's employed by certain TDC's
