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Topic starter
20/01/2014 10:45 am
Hi,
I'm looking to see if anyone can give us some advice here. We made an inquiry on scottish trust deed and we had simple solutions out to try and help us. They told me to go for the trust deed and my with to do a debt plan. When they were on the phone and out at the house both the guy and the woman said we didn't have to change banks so we didn't, we were then passed to a company called carrington dean and I signed the trust deed with them a few weeks later we went to lift money from our banks over christmas for our kids to eat and the bank account was frozen along with all our money to live. Had we known to change banks we would have instead we had to boors over 400 pounds to survive! We called simple solutions and they said someone would call back to help and we didn't receive a call until two weeks later. My with has paid her debt plan with them and the creditors are telling us they haven't received anything six weeks after paying them!
Can someone help are we doing the right thing? Should we change plan?
20/01/2014 10:57 am
Welcome to the forum welma.
Can I ask whether you owe money to the bank that froze your account?
Has it been unfrozen yet?
Has your wife entered into an informal debt management plan or is it a Debt Arrangement Scheme?
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds 
Topic starter
20/01/2014 11:32 am
Yes we had a joint overdraft with lloyds and no we lost all our money in it.
It only says debt management on simplys pack?
20/01/2014 11:54 am
Hi welma.
If your current account was with a bank that you owed money to it should have been made clear to you that you'd need a new bank account where this wasn't the case.
There's two common types of debt solution.
One is personal insolvency, which includes protected trust deeds and bankruptcy. This is for more serious debt problems where the debts cannot be resolved in any other way or where it would take an unreasonable amount of time to do so.
The second are repayment plans, for example debt management plans or Debt Arrangement Schemes. These are most commonly used where the debts can be fully repaid within a reasonable period of time, or perhaps there would be assets at risk in personal insolvency.
In Scotland you have access to the Debt Arrangement Scheme. This guarantees that interest will be frozen and that legal action will not start provided that the creditors accept the arrangement. The alternative debt management plan cannot provide certainty on either of these things.
As such we very rarely see cases where an individual in Scotland is better served by being in a debt management plan rather than the Debt Arrangement Scheme. There are exceptions, but not many.
Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
20/01/2014 2:43 pm
Hi welma
TDA is correct and the position regarding the account should have been clarified firstly by the advisors, but also by the Trustee. The bank will normally freeze accounts if there is a debt with them, however they will normally not offset the money if the trust deed is in place. I assume it was due to the DMP thsat they offset.
It's also strange that you were advised to enter a debt management plan when DAS would probably have provided a more secure and definite route.
Mark
Mark is not posting regularly in the Trust-deed.co.uk forum.
21/01/2014 12:03 pm
My husbands trust deed is with carrington dean and they said right at the start to open a new current account asap. As we were opening a joint account they also advised me to keep own current account open just in case.
